On the afternoon of June 20, 2024, the Ho Chi Minh City Institute for Development Studies and the Ho Chi Minh City Centre ofInternational Integration Support (CIIS) coordinated with the Vietnam International Arbitration Centre (VIAC) and the Ho Chi Minh City Business Association (HUBA) to organize the seminar "ESG - Key to sustainable development: Solutions for promotingbusinesses to effectively practice ESG standards" The seminar successfully attracted more than 300 delegates, including representatives from city agencies, departments, associations, business associations, and numerous media outlets.
Dr. Trần Du Lịch - Vice President of the Vietnam International Arbitration Centre (VIAC)
In his welcoming speech, Dr. Trần Du Lịch – Vice President of the Vietnam International Arbitration Centre (VIAC), stated that sustainable development, linked to the circular economy, is currently a global trend. ESG (Environmental, Social, and Governance) standards are being taken seriously by the business community. Therefore, collaboration among many organizations to compile discussions and insights from experts is essential for the business community. It also contributes positively to the city’s policy-making process, encouraging the adoption of these standards in the near future. Dr. Trần Du Lịch emphasized that businesses need a roadmap and serious investment in each ESG criterion: Environmental (E), Social (S), and Governance (G). Particularly, he stressed the importance of governance, noting that good governance is the foundation for businesses to effectively implement environmental and social criteria. Within governance, risk management is a key point that needs attention. ESG-related risks are now a significant challenge for many businesses when they begin implementing these standards. To enhance risk management capacity, the government and relevant organizations must quickly establish mechanisms, policies, and legal regulations to provide clear guidance for businesses. With the orientation of being "a solid legal foundation for businesses," VIAC has been actively contributing and supporting the city and the business community in professional and legal matters. Building on this foundation, in the near future, VIAC will continue to make practical contributions regarding the legal framework and policies to help the city government and businesses effectively apply new standards, catching up with international trends swiftly yet safely.
Dr. Phạm Bình An – Deputy Director of the Ho Chi Minh City Institute for Development Research
In the opening remarks at the seminar, Mr. Phạm Bình An – Deputy Director of the Ho Chi Minh City Institute for Development Research, stated that in the context of global integration, Vietnamese businesses are facing many pressures in meeting strictrequirements for green and sustainable development. Recently, the government and related agencies have made declarations, commitments, and proposals for implementing the green transition and sustainable development campaign. Specifically, Ho Chi Minh City has demonstrated its determination to realize these goals through the issuance of Resolution 98. Accordingly, the city is maximizing the mechanisms and policies outlined in Resolution 98 to accelerate development, aiming for net-zero emissions as committed by the government. At the end of 2023, the city also issued a strategic framework for green growth through 2030 and implemented decisions to encourage citizens to act and contribute to the local green transition. Regarding ESG standards, it is evident that these standards are a global trend and a key to promoting sustainable business development. In the framework of the 5th Ho Chi Minh City Economic Forum, HIDS, CIIS, VIAC, and HUBA decided to organize this seminar. Through the seminar, Mr. An hoped that businesses will gain a clearer understanding of ESG standards, the landscape of ESG implementation in Vietnam and globally, and from there, plan specific roadmaps to integrate these standards effectively into their business and investment processes in the future.
Mr. Giandomenico Zappia’s report – Board member of EuroCham Vietnam
The seminar opened with Mr. Giandomenico Zappia’s report – Board member of EuroCham Vietnam, who provided an overview of ESG practices and international experience in ESG reporting regulations. Mr. Zappia assessed that in the context where all governments and businesses are aiming for sustainable development, issuing an ESG report is essential for businesses to ensure compliance, identify risks, and improve performance. In the EU, many regulations have been issued, including green definitions in the EU Taxonomy for sustainable finance, a series of requirements in the SFDR for disclosing sustainable risks, ESG due diligence in the supply chain (CSDDD), and the Carbon Border Adjustment Mechanism (CBAM), among others. In Southeast Asia, for example, Singapore has also introduced proposals to build a roadmap and strategy for applying ESG indices in various sectors such as securities and finance. Mr. Zappia pointed out that in Vietnam, the government has shown increasing interest, evidenced by the requirement for public companies to disclose environmental and social impacts (Circular 96/2020/TT-BTC), as well as the development of a green taxonomy and a sustainable reporting handbook (guidance by the SSC in collaboration with IFC). However, the lack of mandatory ESG standards in Vietnam may lead to inconsistencies in reporting practices. He recommended that the government and authorities quickly study and issue regulations and guidelines to enhance transparency and promote ESG practices in Vietnam.
Dr. Nguyễn Đình Thọ – Director of the Institute of Strategy and Policy on Natural Resources and Environment, Ministry of Natural Resources and Environment
Following Mr. Giandomenico Zappia's presentation, Mr. Nguyễn Đình Thọ – Director of the Institute of Strategy and Policy on Natural Resources and Environment, Ministry of Natural Resources and Environment, discussed the context and issues surrounding ESG practices, aiming toward green production and sustainable development. Mr. Thọ emphasized that green economic development not only helps reduce negative environmental impacts but also presents businesses with new opportunities to expand markets and enhance competitiveness in trade and investment. Looking at the global context, after the global climate and environmental crisis, many countries have introduced new rules for sustainable trade and investment development. Many next-generation trade agreements have also emerged, including sustainable development reporting requirements. According to Mr. Thọ, the journey to achieve net-zero emissions to meet the "E" criterion (Environment) in the ESG standards often takes several years. He stressed the importance of measuring emissions, as it is the basis for ESG performance and setting business goals. Mr. Thọ delved into the classification and evaluation of emission scopes, providing information on the legal framework and international standards for emissions scope regulations. Based on this, he offered recommendations for businesses to create suitable roadmaps for scientifically and effectively approaching ESG standards that align with their objectives.
Mrs. Đỗ Thị Thu Hà – Deputy CEO, Head of Sustainable Development Consulting, and NationalLeader of Infrastructure, Government & Healthcare Sector of KPMG Vietnam
As the seminar progressed, Mrs. Đỗ Thị Thu Hà – Deputy CEO, Head of Sustainable Development Consulting, and National Leader of Infrastructure, Government & Healthcare Sector of KPMG Vietnam, discussed "ESG Application Practices in Vietnam and Effective ESG Solutions for Businesses." According to Mrs. Hà, sustainability is measured through specific ESG framework, which can benefit businesses in the long term but may also pose negative financial impacts. Therefore, businesses face risks, including those related to climate change. Mrs. Hà noted that 80% of surveyed Vietnamese businesses have made commitments or plans to implement ESG, yet only about 28% have monitoring and risk control frameworks. She explained that this gap is due to the lack of necessary guidance or insufficient awareness within companies to practice ESG seriously. Thus, businesses must answer key questions about their desired sustainability, feasible measures, and appropriate approaches.
Mr. Jumpei Nagaoka – Associate of Nishimura & Asahi
In the following presentation, Mr. Jumpei Nagaoka – Associate of Nishimura & Asahi discussed the legal issues arising from ESG application. He noted that as global standards become stricter, ESG due diligence in businesses must also have clearer criteria. He observed that ESG-related disputes may arise in various transactions, including those related to supply chains, M&A, consumption, and other issues related to environmental or labor standards violations. To resolve such disputes, arbitration could be a solution due to its international trend alignment. The increasing inclusion of ESG-related clauses in contracts and investment treaties suggests that commercial arbitration will play a larger role in resolving ESG disputes in the future.
Ms. Võ Thị Liên Hương, General Director of Secoin Corporation
From a practical business perspective, Ms. Võ Thị Liên Hương, General Director of Secoin Corporation, shared her experience in implementing ESG in her company. She provided a broad picture of ESG practices at Secoin’s factories in Vietnam and highlighted thought-provoking data on the construction and building materials industry worldwide. With the criterion "Creating eco-friendly artistic bricks and tiles that protect the Earth's climate and can be regenerated," Secoin has been ranked among the top sustainable development businesses in Vietnam in 2023 and Green Business HCMC 2023. Through her hands-on experience with ESG practices based on France’s ICS evaluation framework and in alignment with sustainable development goals (SDGs) and green supply chain management (GSCM), Ms. Hương emphasized the importance of ESG and urged businesses to build their ESG journey in the circular construction and building materials industry, promote the development of green supply chains, and adhere to international ethical business standards.
Mrs. Huỳnh Thị Xuân Liên – Member of PNJ’s ESG Committee and Chairman of the Board at CAO
Following the business sharing session, Ms. Huỳnh Thị Xuân Liên - Member of PNJ’s ESG Committee and Chairman of the Board at CAO, also shared her insights on ESG practices at PNJ. In her presentation, Ms. Huỳnh Thị Xuân Liên analyzed the value and significance of sustainable development. At PNJ, the ESG guidelines are built on three important pillars: Environment (E), Society (S), and Corporate Governance (G). These factors are essential for measuring and ensuring that businesses are developing sustainably and positively impacting communities and the environment. Furthermore, integrating ESG into the business model will help attract more international partners and long-term investors. This framework is not only a trend but also a pathway that PNJ has taken through concrete projects such as CSR activities and environmental protection efforts. She also mentioned PNJ’s participation in the "0 Dong Supermarket" project to support disadvantaged people and the establishment of diversity and inclusion (D&I) standards for the workforce.
Discussion session moderated by Mr. Pham Binh An, featuring Experts participation
To conclude the workshop, a panel discussion on "Solutions to Promote Effective ESG Practice in the Business Community" was moderated by Mr. Phạm Bình An - Deputy Director of the Ho Chi Minh City Institute for Development Research. Participants from various sectors actively shared their views, generating many in-depth discussions, including direct exchanges between government representatives, experts, and participants. Mr. An concluded the panel by offering concrete recommendations for businesses, proposing several solutions to help them develop strategies and roadmaps for implementing ESG standards effectively in the near future.
Overview of the event
For Event's materials: Please refer to
HERE
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The above event is within the Legal Management Series 2024 (LMS 2024) on "Legal compliance for adapting to the modern and green economy" co-organized by VIAC and partners. The series includes 09 activities taking place from June 20, 2024, to November 06, 2024, in Ho Chi Minh City and other southern provinces.
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INFORMATION ABOUT LMS 2024 EVENTS:
 | Foreign Trade Sector Seminar "Current foreign trade transactions: Changes in business strategies and disputes management" Click HERE for more details |
 | Real Estate Sector Seminar "Legal and financial issues in M&A transactions in the real estate segment under the context of new legal framework" Click HERE for more details |
.jpg) | Real Estate Sector Seminar "Real estate disputes in the context of new legal framework" in Khanh Hoa Click HERE for more details |
 | Foreign Trade Sector Seminar "Logistics infrastructure: New requirements in developing strategy and legal framework in Ba Ria - Vung Tau Click HERE for more details |
  | Energy Sector Seminar "Tourism in Binh Thuan Province: Pathway to green transition for sustainable development" Click HERE for more details |
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