Vietnam is among the top ASEAN countries in "impact investing"

Vietnam is moving towards becoming a leading impact investment hub in Southeast Asia, opening up development opportunities for social impact businesses and disadvantaged communities.

At the "Vietnam Impact Investment Forum 2024" on the morning of October 24, the Enterprise Development Institute, VCCI launched the "Impact Investment Index Report 2024".

The "Impact Investing Index 2024" (Orange Index 2024) - a groundbreaking measurement tool to assess the progress of countries on the path to a sustainable and inclusive future. This report is part of a 4-year series tracking the development of the impact investing ecosystem in Vietnam.

The Orange Index is a global initiative with the ambition to mobilize $10 billion by 2030, with the goal of empowering 100 million women, girls and gender minorities. By providing a clear assessment framework for gender equality and climate action, the Orange Index highlights the progress made and areas for further investment in the impact ecosystem.

The Orange Index is assessed on three main pillars: Community Impact, Gender Equality and Climate Protection, with a score from 1 to 100. The "Orange Index 2024" uses survey results from 135 social impact businesses (SIBs) on the IIX Values platform between January 2023 and August 2024.

The Vietnam Orange Index 2024 scores 50, placing Vietnam among the leading ASEAN countries, surpassing the global average of 41. Vietnam has made significant strides in the field of gender equality with a score of 49, higher than the global average and surpassing most countries in the ASEAN region. This reflects the important role of social impact enterprises in empowering women through leadership and economic participation.

Notably, Vietnam performed particularly well in the Community Impact Index, with a score of 60. The Gender Index shows Vietnam’s commitment to equality and inclusion, with a score of 49, higher than the global average and most ASEAN countries. However, Vietnam’s Climate Index only scored 43.

"As the Orange Index 2024 shows, Vietnam - an economy on track to lead the next wave of sustainable and inclusive growth in ASEAN," said Professor Durreen Shahnaz, CEO and Founder of the IIX Fund.

According to Dr. Luong Minh Huan, Director of the Institute for Enterprise Development at VCCI, Vietnam’s social impact enterprises are playing an important role in promoting social and environmental goals. However, Mr. Huan said that the low score in the environmental field shows the need for continued investment and policy reform to improve long-term sustainability and adaptability.

Impact investing is a concept that has begun to gain popularity in Vietnam. Simply put, it is investing in projects that create social or environmental impacts. This is an innovative way to promote the contribution of the private sector to sustainable development. Social impact business organizations are creating a wave that is changing many aspects of life and the business philosophy of traditional business organizations.

According to a report by the United Nations Development Program in Vietnam (UNDP) and the Ministry of Planning and Investment , Vietnam has about 22,000 social impact enterprises and this number is increasing continuously every year. Of which, the number of small and micro-sized social impact enterprises accounts for 89%, and up to 72% of these enterprises have a revenue of less than 5 billion VND/year.

According to Thuy An/VTV

Source: https://doanhnghiepvn.vn/kinh-te/viet-nam-thuoc-top-dau-asean-ve-dau-tu-tac-dong/20241024035752765