Laying Foundation for Sustainable Globalization

RMIT’s Global Business Forum 2023 looked into the key factors and best practices of sustainable foreign direct investment (FDI) in Vietnam through the lens of multinational enterprises.

FDI enterprises have significantly bolstered Vietnam's economy, with investment reaching US$28.85 billion in the first 11 months

Experts of the forum remarked that in 2023, FDI enterprises have significantly bolstered Vietnam's economy, with investment reaching US$28.85 billion in the first 11 months. They emphasized that FDI is crucially growing through industrial parks, as evident in the fact that various MNEs have established or expanded their operations in industrial parks across the nation. This aligns with the government's aim to achieve net-zero emissions by 2050 and to entice new and exceptional FDI.

For example, the LEGO Group is building a US$1.3 billion plant in VSIP III industrial park, Binh Duong province, with an opening date expected in 2024. This would be the company’s first carbon-neutral factory worldwide.

LEGO is targeting a LEED (Leadership in Energy and Environmental Design) Gold certification for its Vietnam factory, setting up rooftop solar panels and a solar farm, in addition to having planted 50,000 new trees in Binh Duong. According to Mr. Benny Choong, Head of Finance for Asia Operation at LEGO Manufacturing Vietnam, the company expects to recruit for 4,000 jobs in Vietnam over the next 15 years.

Vietnam is home to around 400 industrial parks, which Mr. John Campbell, Associate Director, Head of Industrial Services at real estate services company Savills Vietnam, described as “quite impressive for a country of its size”.

He commended the Vietnamese Government’s growing focus on sustainable and eco-friendly industrial parks, Industry 4.0 technologies, and smart manufacturing, citing successful examples from the Vietnam Singapore Industrial Parks and Deep C Hai Phong industrial zones.

“These are the projects that we want because they improve the training of the workers as well as move the country up the value chain,” Mr. Campbell said.

Mr. Adris Bin Isnin, Senior Director, Head of Technical Services, Real Estate Division (Vietnam) at Keppel, emphasized Vietnam’s net-zero commitment as it creates numerous opportunities for the development of green products and services, facilitated by the contribution of foreign companies interested in this objective, with Keppel being among them.

He shared that Keppel is increasingly focusing on constructing green buildings in Vietnam, considering that buildings and construction constitute around 40% of global carbon emissions.

“We also expect to do more work in sustainable urban renewal, where we bring people, AI-driven technology and processes together to bolster the efficiency, sustainability performance and valuation of both new and aged commercial buildings,” the Keppel representative said.

The industry experts provided further examples illustrating the opportunities and challenges associated with navigating Vietnam's business landscape, with insightful discussions of labor quality and talent recruitment, management and development.

Vietnam Leadership Development Lead at Unilever Vietnam Mr. Ryan Trung Truong described how sustaining Unilever’s “two greatest assets – brands and people” is key to achieving the company’s mission of sustainability.

He underlined the ‘We care, we grow’ mindset when it comes to developing people: “At Unilever, we truly care for each individual. We believe that only when we care for each person’s differences, motivations, ambitions in life, as well as skills and capabilities, then they can grow. And of course, the company will benefit from their growth.”

Dr. Dang Thao Quyen, Senior Program Manager for International Business at RMIT Vietnam said that the insights shared by the reputable MNEs can offer hints at how Vietnam can strengthen its business ecosystem to become more sustainable and appealing to high-quality FDI.

She said, “Sustainable globalization is a timely topic for Vietnam and the world as we have just witnessed the COP28 summit on climate change. Vietnam has the necessary foundation to aim for substantial progress, further strengthening its position as an attractive FDI destination globally.

“With a growing influx of high-quality investment, a pressing issue for businesses is the supply of qualified human talent who are knowledgeable and skillful with international outlooks. RMIT University, in particular the International Business program, strongly commits to providing such required resources.”

Source: Vietnam Business Forum