EuroCham discusses ESG reporting at Ho Chi Minh City Economic Forum 2024 seminar

On Thursday, 20 June, within the framework of the Ho Chi Minh City Economic Forum 2024, a seminar titled “ESG: Key to Sustainable Development – Solutions for Promoting Businesses to Effectively Practise ESG Standards” gathered industry leaders and policymakers to address the critical role of ESG practices in sustainable development.

The seminar featured notable attendees, including:

• Tho Dinh Nguyen, President, Institute of Strategy and Policy on Natural Resources and Environment, Ministry of Natural Resources and Environment (MONRE)
• Deputy Director of the Ho Chi Minh City Institute for Development Studies Pham Binh An, and 
• Trinh Quoc Vu, Deputy Director General, Energy Efficiency and Sustainable Development Department, Ministry of Industry and Trade (MOIT)

EuroCham’s Board Member, Giandomenico Zappia, who also serves as Chairman of our Sustainable Finance Sector Committee and Vice-Chairman of our Green Growth Sector Committee, delivered an insightful overview of popular ESG frameworks both in Vietnam and globally. He stressed the necessity of mandatory ESG report criteria to ensure consistency and effectiveness in ESG implementation.

Mr. Zappia highlighted the multifaceted benefits of ESG disclosure, including enhanced transparency for stakeholders, improved access to capital, and better risk management for companies. He noted that 85% of chief investment officers surveyed considered ESG important in their investment decisions, underlining its growing significance in the financial sector.

However, the path to widespread ESG adoption in Vietnam is not without challenges. Mr. Zappia identified key hurdles, including data complexity, the diversity of ESG standards leading to potential inconsistencies, and the intensive resources required for implementation. He stressed that 71% of surveyed companies lack understanding of the data required for reporting, according to a 2022 PwC study.

The seminar also addressed Vietnam’s substantial financial needs for climate mitigation and adaptation. It was revealed that the country requires an additional $368 billion from 2022 to 2040 to meet its sustainability goals, emphasising the urgent need for transparent ESG practices to mobilise these resources.