Businesses need to see ESG as a "compass", not a destination

On the afternoon of May 13, at the press conference of the Vietnam ESG Investment Conference 2025, Mr. Craig Martin, Chairman of Dynam Capital Investment Fund, affirmed that ESG (environment, society, governance) is the "compass" that helps businesses navigate and choose investment opportunities in a sustainable manner.

As global capital flows are gradually shifting away from China, Vietnam is becoming an attractive destination with strong growth potential, an improved legal environment and businesses increasingly interested in sustainable development standards.

However, investors believe that to truly take advantage of this opportunity, Vietnam needs clear, persistent, and consistent direction in policy implementation and corporate governance.

Speakers at the press conference of the Vietnam ESG Investment Conference 2025 on the afternoon of May 13 (Photo: Nhat Quang).

According to Mr. Craig Martin, Vietnam is no longer a potential destination on paper but has actually appeared on the global investment map.

Dynam Capital currently manages a portfolio of about 25 businesses in Vietnam, mainly listed companies. Mr. Craig Martin emphasized that ESG is not the only condition for making investment decisions, but is a "necessary condition".

Instead of investing only in companies with pure ESG business models, Dynam Capital uses ESG as a filter to evaluate the overall business. Investment funds will evaluate everything from environmental impact, to relationships with employees and suppliers, to governance quality and commitment.

"We do not expect businesses to achieve 100 ESG scores. The companies in our portfolio are fluctuating between 50-65%, and that is normal. ESG is a journey, it cannot be done quickly but must be persistent," said the fund representative.

Dynam Capital has been observing businesses for 5-7 years to understand if they are truly transforming, not deciding after just a handshake or a meeting.

He also warned about the superficial appeal of some businesses. There are companies that look attractive at first glance, with high profits and good returns, but if you invest based on passion and initial emotions, it is easy to get lost. What investors care about is whether they keep their word and turn their passion into action.

The Fund will not invest in passion but in the journey of transforming passion into execution capacity, based on good governance criteria, sustainable goals, and long-term development strategies.

Also within the framework of the event, Ms. Mimi Vu, co-founder of the Vietnam ESG Investor Conference, said that ESG is no longer a factor dependent on corporate social responsibility (CSR) or simply a marketing strategy to enhance brand image.

According to her, ESG has become a core part of business operations, closely linked to legal cooperation, certification processes and especially a prerequisite for attracting investment.

She also emphasized that, for Vietnamese enterprises, the development and implementation of ESG policies need to be oriented towards national development strategies, while meeting international legal requirements related to appraisal and transparency.

According to her, this is an opportunity for Vietnamese enterprises to grow sustainably and reach out to the global market, especially in the context that many countries are promoting the diversification of their trade partner networks.

On the FDI side, Mr. Peter Hauggaard, CEO of Ecolean Vietnam, emphasized that awareness is the foundation of all transformations, including the implementation of ESG standards in enterprises. According to him, whether individuals or organizations, all sustainable changes start with a change in mindset.

Sharing his experience working with many international businesses, Mr. Peter said that investors can absolutely choose markets like Europe or other familiar destinations, but many of them are shifting to Vietnam.

The reason, according to him, is because they see Vietnam as a "Southern star", a potential destination in the near future, not only thanks to its growth potential but also thanks to its increasingly clear efforts in improving the investment environment and promoting ESG practices.

Source: https://dantri.com.vn/kinh-doanh/doanh-nghiep-can-xem-esg-la-chiec-la-ban-khong-phai-dich-den-20250513183519389.htm