4:02:01 PM | 12/13/2023
The Vietnamese business community is advancing with discernible steps in the "green race," demonstrating a paradigm shift from contemplation and awareness to decisive action in sustainable business practices, aimed at generating innovative value for society.
The top 10 sustainable businesses in trade and services are honored with CSI Awards 2022
Immediate and long-term gains
According to Mr. Nguyen Quang Vinh, Vice President of Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Vietnam Business Council for Sustainable Development (VBCSD), contemporary businesses have transcended the realm of "corporate social responsibility (CSR) and now recognize that sustainable development entails fostering economic growth in tandem with environmental preservation and enduring social and security advancement. Leading Vietnamese enterprises, exemplified by Vingroup, Vinamilk, Bao Viet Holdings, BIDV, PAN Group, SASCO, Traphaco, Garment 10, PNJ, and TBS Group, are at the forefront of implementing sustainable development initiatives.
Some businesses have ascended to market leadership positions by adopting sustainable development strategies. Vinamilk, for instance, achieved carbon neutrality certification for its Nghe An factory and dairy farm, following PAS2060:2014 standards, showcasing its commitment to reducing greenhouse gasses and contributing to the net-zero target. PNJ, a stalwart in sustainable development, has weathered the challenges of COVID-19 with resilience, surpassing expectations and illustrating superior recovery compared to other businesses, thanks to its commitment to sustainable practices.
Mr. Nguyen Trung Anh, Director of R&D and Business Development at PAN Group, highlighted the tangible benefits resulting from resource optimization, reduced agricultural inputs, utilization of renewable energy, and enhanced efficiency equipment. PAN Group's prudent practices lead to substantial cost savings annually, coupled with increased revenue and profits due to heightened brand value in international markets and access to higher-value market segments. The utilization of waste products, such as processed shrimp shells transformed into animal feed, further contributes significantly to additional revenue, amounting to approximately VND15 billion annually. Moreover, a significant advantage arising from the company's adherence to stringent environmental and social regulations is the enhanced attraction of investors for robust production and business activities. According to Mr. Vinh's assessment, businesses actively engaged in this "green race" demonstrate robust commitments to sustainable development. This includes the strategic transition to a circular economy-based production and business model, the establishment and fortification of green and sustainable supply chains, the promotion of a diverse, equitable, and inclusive (DE&I) business culture, the incorporation of renewable energy in production and business operations, and the reinforcement of sustainable corporate governance practices, exemplified by adherence to the Environmental-Social-Governance (ESG) assessment framework.
Navigating obstacles on the path to sustainability
Mr. Vinh highlighted that amidst the ongoing green transformation, Vietnamese businesses encounter numerous obstacles and challenges. Beyond persistent issues in sustainable corporate governance, supply chain capacity, digital transformation capabilities, and green technology adoption, enterprises grapple with challenges in human resources to align with evolving requirements amid sectors encountering constraints in transitioning towards sustainable development.
Moreover, incongruities within the legal framework, failing to keep pace with domestic and international economic changes, pose challenges by not effectively supporting businesses seeking to embrace new sustainable models.
Real-world experiences underscore the pivotal role of businesses in green development. The production and business activities of enterprises profoundly impact greenhouse gas emissions, rendering them both subjects and agents influencing climate change. In light of Vietnam's ambition to become a high-income economy by 2045, characterized by a 5.5% annual GDP per capita growth rate and a 3.5-fold increase in average income, accelerated action toward responsible and sustainable production models becomes imperative. The World Bank underscored the necessity for Vietnam to surpass historical growth rates from 1990 to 2020, requiring additional energy. Embracing green growth and transformation enhances Vietnam's competitiveness, and fosters foreign investment retention and attraction. International investors and financial institutions increasingly prioritize sustainability and environmental responsibility, with the market emphasizing low-carbon goods.
To bolster and catalyze sustainable business practices in the Vietnamese business community, Mr. Vinh outlined key activities for VCCI and VBCSD. This includes advocating policy recommendations, articulating business perspectives to the government, contributing to the establishment of a synchronized legal framework that aligns with evolving business needs, and providing enhanced support for businesses transitioning to low-emission and circular economic models. Government policies should ensure predictability and alignment with international practices, fostering business confidence in investment and development.
Continued communication, awareness-raising, and training initiatives are essential to instigate a shift in businesses' thinking, encouraging a transition from "for profit” to "for nature." Mr. Vinh emphasized the importance of promoting and enhancing businesses' capabilities in key areas: transitioning to a circular economy model, practicing the ESG framework, adopting sustainable corporate governance, and establishing sustainable supply chains. Given limited resources, focus on directions with a significant impact is crucial to accelerating the transformation of Vietnamese enterprises in the "green race."
Ultimately, the most critical factor lies in the collaborative efforts and shared commitment of the business community and entrepreneurs to realize ambitious sustainable development goals. Through cohesive thinking, heightened awareness, and concerted action, the Vietnamese business community can navigate the path to the "green destination" with greater efficiency and speed.
Innovation and sustainability are competitive advantages for businesses Mr. Binu Jacob, CEO of Nestlé Vietnam Innovation and sustainability are crucial for companies to not only achieve their business objectives but also to effectively address social and environmental challenges. Traditionally, the primary focus has been on optimizing profits for shareholders. However, for long-term sustainable development, it is essential to create value for both shareholders and the community. Today, investors are increasingly interested in efficient operations and their positive impacts on the environment, society, and corporate governance. This includes contributions toward addressing social challenges and climate change. Nestlé, for instance, considers creating societal value as a primary driving force in its business strategies. In Vietnam, Nestlé has implemented numerous sustainability initiatives aimed at positively impacting the environment and society. These initiatives prioritize children’s physical development and nutrition, responsible purchasing, climate action, water management, women’s empowerment, and sustainable packaging. The Nestlé MILO Active Vietnam Program, in collaboration with the Ministry of Education and Training and the General Department of Physical Education and Sports, promotes physical activities and nutrition for children. Amid the COVID-19 pandemic, Nestlé organized home-based physical training activities, reaching 8,500 schools and engaging 5 million students. The Nescafé Plan, a sustainable coffee farming program launched in 2011, has assisted farming households in reducing fertilizer and water usage, implementing intercropping models, and applying digital technology in agricultural production management. In close cooperation with the Ministry of Agriculture and Rural Development, Nestlé has reduced emissions and promoted regenerative agriculture. The company’s significant contributions to forest protection and climate impact reduction have been recognized and appreciated. The ‘Nestlé with Women’ Program, in partnership with the Vietnam Women’s Union, not only imparts nutritional knowledge but also supports the development of business skills and digital transformation, thereby enhancing the status and income of women in the community.
Highlighting commitment to sustainable development Mr. Krishnakanth Kodukula, General Director of Zamil Steel Buildings Vietnam In today's world, sustainable development has become a focal point, and it is paramount for businesses to assume responsibility for the environment and society. Sustainable development entails not only meeting present needs but also conserving resources for future generations. The pursuit of sustainable development has numerous merits, including heightened competitiveness, reduced risks, and the creation of business advantages. However, it also presents challenges such as investment costs and cultural shifts within businesses. To achieve sustainable development, businesses must adopt solutions such as establishing a distinct vision and mission for sustainable development, integrating it into all business activities, and cultivating a work environment that encourages sustainable development. In my capacity as the General Director of Zamil Steel Buildings Vietnam, I hold the firm belief that sustainable development is not only a passing trend but also a critical factor for business success in the present era. At Zamil Steel Buildings Vietnam, we remain steadfast in our commitment to ensuring sustainable development activities that contribute towards Vietnam's sustainable future. It is my sincere hope that other businesses will also prioritize sustainable development, as it is a long process that necessitates the consensus of all employees in the organization. The benefits that sustainable development brings are invaluable and, with the right solutions, businesses can attain success in this journey.
Shaping the MICE industry into a driving force for Vietnam's Economy Ms. Hoang Lan, CEO of Hoabinh Group Societal responsibility is not just a business obligation but an opportunity to create lasting value. In the MICE sector, specific questions need to be raised about applying technology and advanced methods to reduce negative impacts on the environment. How can we promote innovation and positivity in an industry that demands creativity and flexibility, such as MICE? Sustainable relationships with partners, clients, and the community all play a crucial role. Building a tightly-knit, positive ecosystem among stakeholders is essential, contributing not only to the positive image of the business but also to the overall development of the social community. Furthermore, the endeavor to shape and elevate the MICE industry into a developed sector is a top priority for Vietnam. Leveraging the potential of tourism and economic growth can establish a robust international presence for Vietnam in this field, presenting numerous opportunities for both domestic and international MICE enterprises. In conclusion, a call for close collaboration among MICE businesses is extended to devise practical, innovative, and responsible solutions. Together, they can construct a flourishing MICE industry that not only contributes to economic prosperity but also serves as a positive force for the community and the environment, aligning with the sustainable development of businesses and the nation of Vietnam.
Responsible business practices can drive positive change and contribute to a more sustainable and equitable society Mr. Pham Ngoc Khang, Chief Finance Officer, Home Credit Vietnam Home Credit Vietnam's commitment to sustainability is not just a pledge but a tangible part of our organizational DNA, evident in the meticulous integration of ESG practices into the very core of our business strategy. Aligned with the broader Home Credit Group's ESG framework, Home Credit Vietnam places paramount importance on six key pillars: Responsible Finance, Financial Inclusion, Economic Growth, Digital Empowerment, Diverse Workforce, and Sustainable Communities. This comprehensive approach embraces a holistic strategy that encompasses environmental protection, social inclusion, ethical governance, and responsible financial practices. As a company with leading ESG practices in the consumer finance industry, Home Credit Vietnam acknowledges the symbiotic relationship between economic success and the imperative for responsible business conduct. We not only ensure sustainable growth for the company but also serve as a role model for the industry, showcasing how responsible business practices can drive positive change and contribute to a more sustainable and equitable society. Home Credit Vietnam’s active application of the Vietnam Corporate Sustainability Index (CSI) underscores our dedication to setting and meeting industry-leading standards. CSI serves as a crucial benchmark, propelling Home Credit Vietnam to continually enhance our sustainability initiatives, fostering positive societal impact. Accompanying Vietnam in its commitments to sustainable development
Mr. Montri Suwanposri, General Director of C.P Vietnam Livestock JSC With over 30 years of experience in the industrial, agricultural, and food sectors in Vietnam, C.P. Vietnam Livestock Joint Stock Company (CPV) has implemented sustainable development strategies. These strategies, focusing on the three main areas of “Feed - Farm - Food”, are built on the three core values of “For the country, for the people, for the company”. They are integrated to support the social community and environment in business activities, aiming to become a sustainable company. CPV has been recognized with significant awards from the Vietnamese government and central agencies, including the Third-class Labor Order, Top 10 Friendly Green Factory, Top 10 Reputable Food Company, and Vietnam Sustainable Business. Winning the “Top 100 Sustainable Business” Award is a proud achievement, reflecting the recognition from the Government, central agencies, business community, organizations, and society for CPV’s outstanding contributions to the sustainable development of the Vietnamese business community. CPV consistently updates and integrates CSI indicators into its business operations. The company not only delivers high-quality, nutritious, and safe food to consumers but also emphasizes the importance of environmental protection, biodiversity conservation, and sustainable development. This is achieved by adopting a circular business model and effectively producing and using natural resources and energy. With the aid of science and technology, digital technology, digital transformation, and sustainable infrastructure development, CPV strives to improve product quality, competitive advantages, and business growth, while also supporting environmental protection and community support. CPV is committed to achieving sustainable development goals in line with its strategic direction. The company stands alongside the Government of Vietnam in its sustainable development commitments, working towards realizing its vision and mission with relevant parties, and contributing to green and sustainable national development.
Opportunity to enhance brand reputation, consolidate trust of stakeholders Mr. Pham Hung Anh Tuan, Head of Operations, BAT Vietnam The Corporate Sustainability Index (CSI) by Vietnam Chamber of Commerce and Industry plays the role as an essential tool to support sustainable corporate governance, helping the business community to self-assess the effectiveness and impact of their sustainable development activities, thereby driving further or improving their sustainability program. Accomplishing those indices and being recognized at “CSI 100 Awards 2023” by VCCI offer businesses like us a valuable opportunity to enhance the brand reputation, consolidate the trust of stakeholders, and drive competitiveness capabilities. Throughout the journey of 28 years in Vietnam, BAT has put sustainable development at the center of our operations and business activities, and continuously promotes this commitment through embracing and implementing the sustainability agenda with a wide range of practical initiatives. BAT Vietnam’s sustainability targets not only respond to the Group’s strategies but also well align with the goals of the Vietnamese Government and local market characteristics. We are striving for excellence in Environmental management, positive Social impact, and robust corporate Governance – which allows us to continuously create shared values for our stakeholders. This is the compass guiding us to continue to thrive stronger, and as well as inspire like-minded stakeholders to join hands in building a more sustainable Vietnam. Committed to sustainable development and energy efficiency for a sustainable future
Mr. Tony Meng, Vietnam Country Manager, Delta Electronics Vietnam Sustainable development is not only a global trend but also an important strategic vision of Delta Electronics. In a time when the challenge of climate change and growing demand for clean energy is becoming increasingly important, Delta Electronics is committed not only to good corporate practice but also to the community and the environment. Delta Electronics not only provides energy-saving products and solutions, but also integrates smart solutions to optimize performance and reduce environmental emissions. Delta Electronics is proud of the green projects and green data centers we have built around the world and in Vietnam, where we not only reduce power consumption but also reduce CO2 emissions. As renewable energy becomes an important part of Vietnam's future, Delta Electronics has set a goal of using 100% renewable electricity at all of our global business locations by 2030. We believe that, through innovation and creativity, we can achieve a sustainable future for both Vietnam and the world. Delta Electronics is not only a manufacturer and technology solution provider but also Vietnam's partner in promoting energy transition and minimizing environmental impact. We hope that our commitment will inspire and motivate other businesses, as well as communities, to join hands in building a sustainable future for ourselves and for future generations. |
By Quynh Anh, Vietnam Business Forum
Vietnamese
