At the event (Photo: The US Embassy in Vietnam) The new initiative promotes socially-conscious business behaviour,known as Environmental, Social, and Governance (ESG) standards.
Investors use ESG standards to measure how a company protects theenvironment; manages its relationships with workers, customers, and thecommunities where it operates; and employs transparent and accountablecorporate governance.
USAID Assistant Administrator for Asia Michael Schiffer and ViceMinister of Planning and Investment Tran Quoc Phuong announced the ESGinitiative at a USAID-supported business forum.
“USAID is pleased to launch this new initiative with the Ministryof Planning and Investment,” said USAID Assistant Administrator Schiffer,“which will help small businesses improve their competitiveness and innovation,overcome constraints, and chart a path for sustainable growth and job creationand to continue to contribute to Vietnam’s prosperity.”
This first-ever ESG initiative for Vietnam targets small andgrowing businesses (SGBs). SGBs account for more than 90% of Vietnam’s privatesector, employ more than 50% of the workforce, and contribute roughly 40% ofGDP.
As such, SGBs play a critical role in Vietnam's socio-economicdevelopment and environmental sustainability. ESG is a recognition that businesssustainability is multi-faceted, extending beyond environmental issues topeople, resources, and systems. Businesses that invest in more energy efficienttechnology, create a good impact on communities, and consider input andfeedback from people affected by the business achieve consistent growth andhave stronger business models.
USAID’s new ESG initiative will help SGBs adopt ESG standards. By2025, the initiative will deliver ESG technical assistance packages to 300businesses, of which 10 will receive additional assistance to pilot, implementor scale their innovative ESG business concepts. The effort supports Vietnam’sGreen Growth Strategy 2021-2030, and the Prime Minister’s Decision 167 onsupporting private enterprises in sustainable business.
The US and Vietnam will celebrate the 10-year anniversary of theirComprehensive Partnership in 2023 and this ESG initiative demonstrates how thetwo countries work strategically together to further sustainable, inclusivegrowth in Vietnam.
The new initiative is part of USAID’s 36 million USD ImprovingPrivate Sector Competitiveness (IPSC) project. IPSC removes policy, market, andfirm-level constraints on the growth of SGBs, including those owned by womenand vulnerable populations. IPSC works with Vietnam to foster an innovative anddynamic private sector that can compete globally and expand economicopportunities domestically./.
VNA
