Digital transformation and ESG practices: A gateway to global integration.

(Dan Tri Newspaper) - While digital transformation helps increase productivity, reduce costs, and enhance competitiveness, ESG is the standard by which businesses affirm their sustainable value to investors, partners, and consumers.

Digital transformation is no longer just a trend but has become an essential driving force in today's era, helping businesses enhance their competitiveness through automation, resource optimization, and improved efficiency.

Digital transformation is not just about using software or automating processes; it is gradually being deeply integrated into long-term business strategies. An effective data management system, the application of artificial intelligence in analyzing consumer trends, or blockchain for supply chain control – all are becoming the "new standard" for modern businesses.

While digital transformation strengthens internal capabilities, ESG (Environmental, Social, and Corporate Governance) is a mandatory criterion for businesses to enter the global arena. ESG is not simply about social responsibility reports; it has become an indicator of a company's sustainability and transparency in the eyes of international investors.

Markets such as the EU, the US, and Japan are tightening regulations on ESG standards in their supply chains. The EU's Carbon Border Adjustment Mechanism (CBAM) is a prime example, demonstrating that domestic businesses are forced to transition to green if they don't want to be left out of the game for survival.

Beyond environmental aspects, ESG also encompasses criteria related to employee rights, gender equality, diversity, and transparent governance. These factors help businesses build a responsible brand image, create trust with customers and partners, and attract green investment capital – which is increasingly gaining a significant share in the international financial market.

Mr. Vo Van Huy Hoang, Director of Strategy and Digital Transformation at Vinasoy Vietnam Soy Milk Company, said that no sector is an exception. Whether in manufacturing, finance, or services, ESG helps businesses operate transparently, responsibly, and increase long-term competitiveness.

In fact, digital transformation and ESG are not two parallel journeys, but can support and complement each other. Experts in sustainable development and green transformation consulting believe that ESG acts as a guiding force, while digitalization provides the impetus to help businesses accelerate.

In the sustainable development roadmap based on ESG standards, digital technology plays a crucial role, supporting businesses in effectively managing data, making transparent decisions, and accurately measuring ESG indicators. As a result, businesses not only meet market and investor expectations but also create a foundation for long-term growth, linking economic benefits with social responsibility.

Specifically, digitalization helps businesses measure ESG effectiveness more accurately, from carbon emission inventories and monitoring sustainable raw material sources to transparent information disclosure according to international standards. Conversely, ESG also motivates businesses to improve processes, invest in clean technologies, and adopt smart manufacturing models.

Some large businesses in Vietnam have begun to combine both of these elements. For example, in the textile and garment industry, a sector facing significant pressure regarding emissions and labor, many businesses have invested in ERP systems, automated production, and adopted standards such as WRAP and BSCI to meet the requirements of international partners.

Despite its immense potential, the journey of integrating digital transformation and ESG is far from easy. Many small and medium-sized enterprises (SMEs) still view ESG as a "compliance burden," while digital transformation remains a "luxury."

According to the 2025 SEA CFO Agenda 2025 survey, recently published by Deloitte's Southeast Asia CFO Program, despite understanding the importance and urgency of ESG, only 23% of respondents said they have integrated ESG into their operating models, and the majority are only in the exploratory or experimental stages. 80% of the reasons for this reality stem from barriers related to resources and personnel, as well as standards for measuring the impact of ESG.

Following the success of the first Vietnam ESG Forum, Dan Tri newspaper officially launches the Vietnam ESG Forum 2025 with the theme " Science and Technology and the Driving Force for Sustainable Development".

This forum will focus on one of the key elements for promoting sustainable development in the new era: science and technology.

Within the framework of the forum, on June 24th in Hanoi , Dan Tri newspaper organized a seminar with the theme "Digital Transformation Solutions and ESG Practices - The Key to Businesses Integrating into the Global Economy". This was one of the satellite events "heating up" the Vietnam ESG Forum 2025.

Source: https://dantri.com.vn/kinh-doanh/chuyen-doi-so-thuc-hanh-esg-canh-cua-huong-den-hoi-nhap-toan-cau-20250622113426029.htm