Speakers at theVietnam ESG Investor Conference 2023 organised by Raise Partners and Vietcetera on May 31 in HCM City. (Photo: VNA) Speaking at the Vietnam ESG Investor Conference 2023, Sarah Hooper, consulgeneral of Australia in Ho Chi Minh City, said it was of utmost importance forinvestors to build a resilient Environmental, Social, and Governance(ESG)-centered financial ecosystem.
“The Australian and Vietnamese governments are committed to growing two wayinvestment - a distinct departure from the approach of prior years when wesought to grow investment at home,” she said.
“We are actively working to shape Australia and Vietnam’s shared region – theIndo-Pacific region – as one that is open, stable and prosperous.
“Now we are partnering for investment in Vietnam recognising the long termbenefits that will deliver for our region,” she added.
“Corporations have found that aligning with ESG standards is not just aboutgrowth but survival,” according to the event’s organisers.
ESG, a set of standards measuring factors related to sustainable developmentand corporate impact on society, has been a critical term for businesses andinvestors in recent years. While ESG has been a concept for some time, theCOVID-19 pandemic underscored its significance.
In response, investors are recalibrating their strategies, moving beyondtraditional financial metrics to embrace investment trends informed by ESG evaluations,experts noted.
According to a 2022 report by Bloomberg Intelligence, global ESG assets couldreach 50 trillion USD by 2025. The trend toward investing in companies adheringto ESG standards is clear.
“These investments can mitigate adverse environmental and societal impactswhile generating long-term value for investors,” the report noted.
In this context, the conference aims to foster sustainable investmentopportunities in Vietnam, contributing to a resilient ESG-centered financialecosystem.
The event aims to connect investors with sustainable investment opportunitiesand help them navigate the country’s financial landscape and regulations.
It also aims to support Vietnamese firms in identifying ESG-compliantinternational investment opportunities and sustainable financial prospects.
It seeks to help both investors and businesses identify and assess specificrisks, opportunities, and trends in Vietnam through an ESG lens.
Craig Martin, executive chairman of Dynam Capital, said: “ESG and stewardshipare increasingly important for investors and companies globally, and nowhere isthat more relevant than in Vietnam as it reaches a key inflection point in itsindustrialisation and urbanisation growth.”
Srini Nagarajan, managing director and head of Asia at British InternationalInvestment, said the company wanted to support climate finance projects inpriority markets such as Vietnam to “create sustainable, productive andinclusive economic growth.”
Experts said in an era of growing environmental and social concerns, ESGstandards have emerged as a game-changer for firms seeking to improve theircustomer engagement and financial access.
ESG is also the key to gaining competitive advantages as it enhances firms’internal governance and promotes their public image.
ESG commitments
According to a 2022 PwC report, more than 80% of Vietnamese businesses havemade ESG commitments or plan to do so in the near future. This shift isbasically driven by the demands of consumers, employees and investors.
Over 60% of companies that have yet to embrace ESG cited a lack of knowledge asthe key barrier to ESG commitments, 48% cited financial capability, 46% citedcompany size, and 28% cited a lack of transparency in ESG data.
As ESG is not free, many companies willing to embrace ESG are findingthemselves stuck in a vicious circle – they need funds to adopt ESG, yetwithout ESG in place, they remain in a weak position to access funds and gainsales.
Experts also noted ESG rules in Vietnam lack coherence, and the allocation ofresponsibilities among stakeholders is poorly regulated.
This legal incompleteness could discourage foreign investments in the greensector and incur additional costs related to environmental assessment.
They have also called for more regulations for Vietnam’s carbon-neutralcommitments in COP26 and more measures to raise the awareness of ESG amongcompanies.
Co-hosted by Raise Partners and Vietcetera, the two-day event attracted morethan 400 leaders of multinational corporations from various industries./.
VNA
