HANOI: More small and medium enterprises (SMEs) in Vietnam have integrated environmental, social and government (ESG) practices into their operations amid the global trend of sustainable development and responsible business.
SMEs now account for over 95% of the total enterprises in Vietnam.
They also recruit 51% of the social workforce, contributing more than 40% of gross domestic product and 30% of the total state budget revenue.
Pacific Asia Commercial Dispute Resolution Arbitration Centre chairman Tran Minh Son said many SMEs that paid attention to implementing corporate social responsibility (CSR) activities said corporate profits and returns on investment must be viewed in a broader context.
That includes socio-economic issues and CSR.
These companies said they voluntarily pursue social and environmental concerns from labour and employment practices, environmental issues such as biodiversity, climate change, pollution prevention, fighting bribery and corruption to active participation in community activities, Son said.
Viet Truong Co in Hai Phong City chief executive officer Ngo Minh Phuong said a company can ensure sustainable business performance when it archives business growth and development goals without having a negative influence on social development and the environment.
Integrating ESG practices into their operation could help businesses increase profits, outrank their competition, and affirm their reputation in the business environment, Phuong said. — Viet Nam News/ANN
