SVA Financial Group: Green Strategy for Sustainable Development

Vietnam is facing a daunting challenge - sustainable development. The Government is always concerned about how to develop the economy while ensuring the interests of the community and protecting the environment. Quite a lot of activities have been launched to find out solutions to this matter of green development. One of most effective, best-rated events is GreenBiz 2011 - a conference on European green business solutions for Vietnam – to be held in Ho Chi Minh City from September 15 to 16, 2011 by the Vietnam Chamber of Commerce and Industry (VCCI) and the European Chamber of Commerce in Vietnam (EuroCham). On this important occasion, the Vietnam Business Forum interviewed Mr Nguyen Minh Son, President of SVA Financial Group, a leader in deploying green business strategies in Vietnam today. Le Sang reports.

 

That’s true. In the past years, SVA Financial Group has been aware of the importance of building a green and clean environment. Accordingly, to harmonise common interests of the community with those of the company, SVA Financial Group has been continuously innovative and creative in every phase of integration. SVA Financial Group is well-known not only for being a financial investment company but also for being a pioneer in clean energy development, green and environment-friendly business. These are SVA Financial Group’s sustainable development objectives and strategies. We always want to become a community-oriented business.

 

A business certainly must have revenue and profit to survive. This is a fundamental principle of business. But in the present context, the business cannot care about only profit while paying no heed to its responsibility to the community. SVA Financial Group used to participate in seminars on "green business solutions" in 2009. And, we always consider deploying “clean” projects as a message to the business community in Vietnam and in the world that “let’s do business for the sake of sustained interests of the human society.” This may also be a solution to the Vietnamese Government’s concern about sustainable development.

 

Currently, SVA Financial Group is carrying out a 30-MW wind-to-power facility (phase 1) in Huong Linh commune, Huong Hoa district, Quang Tri province. The second-phase investment will raise its capacity to 1,000 MW. We believe that the Government will have proper care and incentives for "green business solutions" in the near future because they will create real value and contribute to community development, job creation and community sustainability.

 

It is a long road from defining objectives to bringing them into life. It is proven that difficulties to “green business” are multiple and financial difficulty is the highest barrier. SVA Financial Group understands that "green business" requires a huge investment, its benefits are typically in the long term, and its goal is oriented to the community development. Of course, not all companies are willing to go on a long way while they know that profits are not high, even a coverage for initial losses is highly likely.

 

SVA Financial Group has carried out a series of community-centred projects and they are all long-term ones which require big investments and short-term profit sacrifice. One of typical projects is the second-phase wind-to-power facility in Quang Tri province. We have pursued this project for more than three years and faced up with a slew of difficulties arising from the process of implementation. However, SVA Financial Group, with a strategic vision and clear knowledge of long-term benefits, has spared no effort to carry out this project.

 

As I have mentioned above, carrying out projects according to green business solutions in Vietnam is now a challenging task for any company. To pave the way for green business solutions to be brought into practice, it now needs a concerted coordination and support from the Government rather than separate efforts of companies. The Government needs a clear roadmap and an incentive mechanism to create best conditions for projects developed with "green business" solutions. Tax policy, legal procedures and investment mechanisms should be the first to be thought of. While the controversy over nuclear energy development is being heated, incentive policies for sustainable, friendly clean energies like wind power should be considered important.

 

Thus far, the Government has adopted policies in support of clean energy development but I personally think they are not enough. For example, the Government subsidises 7.8 cents per kWh of clean electricity from August 28, 2011 but this amount is too small as compared with countries with developed clean energy industry while investors face much more difficulties in developing clean energy. Hopefully, the Government will raise the subsidy to 11 - 12 cents per kWh in the near future. This will be a motivation for this green business field.