Sustainable Development: The Inevitable Direction of Private Enterprises

Currently, the private economic sector in Vietnam is becoming the most populous sector, contributing the most to the Vietnamese economy. According to data from the Central Policy and Strategy Committee, this sector accounts for about 98% of the total number of enterprises, contributing 30% of the budget revenue, more than 50% of GDP, over 56% of total investment capital and creating jobs for 85% of the workforce.

Assessing the role of the private economic sector, in the article "Private economic development - Leverage for a prosperous Vietnam", General Secretary To Lam set out a strategic vision for 2030, the private economy is expected to contribute 70% of GDP, with many enterprises having the capacity to compete globally, master technology and deeply integrate into the international value chain.

The General Secretary has clearly stated many contents to develop the private economic sector, including content 7: Developing the private economy on a sustainable basis, with business ethics and social responsibility.

In fact, in recent times, many businesses have been pioneers, paying attention to green economy, sustainable development, focusing on ESG criteria, contributing to the country's sustainable economic development.

ESG is an acronym for Environmental; Social and Governance. This is a set of standards to measure factors related to sustainable development and the influence and impact of businesses on the community.

Stories from businesses

Ms. Cao Thi Ngoc Dung, Chairwoman of the Board of Directors of Phu Nhuan Jewelry Joint Stock Company (PNJ) said: Sustainable development is no longer a new topic. This is considered an opportunity for development for all types of businesses, not only large foreign-invested enterprises, large economic groups but also small and medium-sized enterprises, sustainable development associated with ESG is considered an option and an opportunity.

Many women-owned businesses have chosen the path of developing green products, to create a sustainable process.

Businesswoman Dao Thuy Ha (Deputy General Director of Traphaco Joint Stock Company) said: From the very beginning, the company has chosen the path of developing green products to create a sustainable process. In fact, over the past 50 years, the ESG (sustainable development) model has been a commitment by the company to shareholders and stakeholders on sustainable development, good growth while paying attention to environmental and social protection.

In the process of building the business, we realized that the environment is a very important issue. Therefore, we develop medicinal herb growing areas in the mountains, sign contracts with people so that they can proactively practice protecting medicinal herb sources, green farming and protecting the environment. Thanks to such implementation, Traphaco has become a pioneer in clean medicinal herbs in Vietnam, trusted by the market.

Sharing this view, businessman Tran Thanh Viet (General Director of Vgreen Group) shared: "Since 2010, when laying the foundation for the company, I have determined that, for a private enterprise, to go the long way and grow, to participate in the economy, it is necessary to focus on developing a sustainable foundation, having business ethics and social responsibility.

Therefore, in addition to focusing on corporate governance, we also focus on social responsibilities such as: investing in developing raw material sources, being ready to be transparent with data, improving production towards energy saving; participating in humanitarian and charity programs..., contributing to the community and society."

The development of Vgreen Group is always associated with community responsibility.

Responding to the question about lessons learned from businesses that have succeeded in sustainable development, Ms. Phi Hoa (Founder and CEO of investment strategy consulting firm - M&A ONE-VALUE) commented: "In the private economic sector, we see that ESG is gradually becoming a factor that investors consider seriously. Therefore, I affirm that sustainable development is not a story of "following the trend", but a strategy to help them stand firm when the market changes.

Ms. Phi Hoa shares her experience

Successful businesses in this direction all have in common a long-term mindset. They are not caught up in short-term profit goals but always ask the question: "What will I leave behind in 5 years, 10 years?" At the same time, they highly value business ethics. It is the choice to do the right thing, even if the initial cost may be higher, because they believe that the right thing will last."

Recognizing sustainable development as a common trend of Vietnamese enterprises, the representative of VCCI also emphasized: Sustainable business is the capacity of enterprises to create positive impacts on the environment, society and economy, demonstrated through the development strategies of enterprises associated with the fields of industry, geographical area, and market coverage of enterprises. In which, ESG is an inevitable trend, providing an assessment framework on Environment, Society and Governance in business operations, helping stakeholders understand how enterprises manage risks and opportunities in these three aspects.

What policies help private enterprises develop more sustainably?

According to Ms. Phi Hoa, policies to help private enterprises develop sustainably are not only a guideline but also a powerful tool to promote business behavior. At the same time, she proposed that the state should have specific financial incentive policies such as tax exemptions, support for access to green credit or subsidies for clean technology.

In addition, it is important to develop a set of ESG standards specifically for small and medium-sized enterprises. These standards need to be easy to apply, practical, but still ensure transparency. Finally, a training and consulting ecosystem is indispensable, helping businesses – especially small businesses – understand that sustainable development is not a burden but an opportunity.

"I hope the Government will soon have preferential policies to encourage businesses using outdated and environmentally unfriendly technology to switch to advanced technology, contributing to improving production, saving raw materials, and meeting the standards of a green economy. In addition, to avoid sustainable development being just a trend, there must be specific directions for businesses to look at each other and keep up with development," businessman Tran Thanh Viet added.

Private economic development - a lever for a prosperous Vietnam

Source: https://phunuvietnam.vn/phat-trien-ben-vung-huong-di-tat-yeu-cua-doanh-nghiep-tu-nhan-20250326121456188.htm