The US Agency for International Development (USAID), and Vietnam’s Ministry of Planning and Investment (MPI) on Tuesday announced a new initiative to spur private sector-driven sustainable and inclusive growth across Vietnam.
At the event
The new initiative promotes socially-conscious business behavior, known as Environmental, Social, and Governance (ESG) standards. Investors use ESG standards to measure how a company protects the environment; manages its relationships with workers, customers, and the communities where it operates; and employs transparent and accountable corporate governance.
Speaking at the event, USAID Assistant Administrator Schiffer said that this new initiative would help small businesses improve their competitiveness and innovation, overcome constraints, and chart a path for sustainable growth and job creation and to continue to contribute to Vietnam’s prosperity.
USAID’s new ESG initiative will help SGBs adopt ESG standards. By 2025, the initiative will deliver ESG technical assistance packages to 300 businesses, of which 10 will receive additional assistance to pilot, implement or scale their innovative ESG business concepts. The effort supports Vietnam’s Green Growth Strategy 2021-2030, and the Prime Minister’s Decision 167 on supporting private enterprises in sustainable business.
The new initiative is part of USAID’s $36 million Improving Private Sector Competitiveness (IPSC) project. IPSC removes policy, market, and firm-level constraints on the growth of SGBs, including those owned by women and vulnerable populations. IPSC works with Vietnam to foster an innovative and dynamic private sector that can compete globally and expand economic opportunities domestically.
In April 2022, USAID and MPI expanded their joint efforts to strengthen private sector competitiveness.
