At the discussion session "Policy innovation for a green and digitally updated Asia - Pacific" within the framework of the ACCA Asia - Pacific Forum on May 28, in Hanoi , Ms. Claudia Anselmi, General Director of Hung Yen Garment and Dyeing Company, and Vice President of the European Business Association in Vietnam, shared many things about ESG practices (environment, society and governance - PV) in enterprises.
Guests attending the discussion session
"I am an investor from Italy who has been doing business in Vietnam since 2008 and am running a textile factory specializing in high-quality fabrics.
"I have always believed in practicing sustainable development from the very beginning. We have to go green and digital to be able to compete in the global economy , when our products are focused on export, the competitive pressure is huge," said Ms. Claudia Anselmi.
“To have a certain position in the supply chain, it is imperative that we move towards a green and digital transition. If we do not do so, we risk being out of the market. Adhering to a sustainability strategy from the beginning helps the company to easily comply with the regulations of markets such as the European Union,” the businesswoman added.
Talking about the obstacles for businesses when practicing ESG and sustainable development strategies, Ms. Claudia Anselmi said, the first is related to knowledge and understanding. In fact, many businesses find this a very new issue, not all businesses have resources and personnel with expertise in this issue.
In addition, the initial investment cost is too high. ESG practice requires investment in machinery, technology, energy equipment, etc. All of these are complex systems, requiring a lot of capital, calculating the return on investment rate, and taking a long time before going into operation, etc.
Difficulty in accessing green finance
Ms. Claudia Anselmi also emphasized the difficulties of businesses in accessing green finance.
"In Vietnam, capital flows for green credit only account for about 4-5% of the total credit capital in the market. This is a very low level. This is a real challenge for businesses, because capital is the decisive factor for investment, business and development decisions of businesses," said Ms. Claudia Anselmi.
Mr. Pulkit Abrol, Asia- Pacific Regional Director of the Association of Chartered Certified Accountants (ACCA), said that the "appetite" for green finance in ASEAN and Vietnam is increasing. This comes from the increasing demand for funding and investment, especially for infrastructure to achieve sustainable development goals and Net Zero commitments.
"ACCA is introducing many policies for green finance development and sustainable development for businesses in the ASEAN region such as perfecting financial reporting standards, regulations and norms," said Mr. Pulkit Abrol.
Considering that the biggest obstacle businesses face when implementing green standards and regulations is strategy, skills and support, Ms. Julia Tay, Asia-Pacific public policy leader (EY), recommends that businesses must have a strategy to be ready to implement standards, rather than waiting for standards or regulations to be issued.
“This depends a lot on businesses transforming and investing in sustainable development,” said Ms. Julia Tay.
Emphasizing that in the green transition process, businesses cannot do it alone, Ms. Claudia Anselmi stated: "It requires the operation of the entire system, from finance, accounting to legal regulations. This is a long journey that requires a lot of support."
Source: https://thanhnien.vn/neu-khong-chuyen-doi-xanh-chung-toi-co-nguy-co-phai-roi-khoi-thi-truong-18524052820344161.htm
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