VCCI to Rate Sustainable Companies
The Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the Ministry of Labour, Invalids and Social Affairs, the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade, the Vietnam General Confederation of Labour and the State Securities Committee of Vietnam (SSC), launched the sustainability rating programme for 2016.
This is the first year VCCI hosts the sustainability rating programme under the guidance of the government, as stated in Notice 398/TB-VPCP dated December 15, on rating of sustainable companies in 2016. The rating of sustainable companies is based on Corporate Sustainability Index (CSI).
CSI is one of VCCI’s initiatives to promote sustainability (*) in the business community as a gauge of corporate value based on sustainable development criteria in economic, environmental and social aspects. CSI is also a tool to identify measurable objectives and administer changes for greater sustainability. CSI criteria tally with domestic political and social contexts as well as international practices developed and advised by top-notched sustainability specialists from VCCI, governmental agencies, domestic and international organisations, VCCI members and other independent experts.
VCCI President Vu Tien Loc affirmed, “CSI is designed to promote and support the business community in Vietnam to develop sustainably and promote the role of the business sector in the achievement of sustainable development goals (SDGs) in Vietnam.”
Ms Dinh Thi Quynh Van, General Director of PwC Vietnam, noted that “Sustainable development has now become a target and a vital performance requirement of every nation and every business. The corporate sustainability rating programme is of great significance as it helps further promote sustainable development in the business community and realise Vietnam’s green growth strategy toward a low-carbon society and climate change adaptation.”
All businesses from every economic sector operating in Vietnam can register if they meet the following conditions: (1) Have comprehensive sustainable development strategy, (2) Understand the benefit of sustainable development as the main framework for the business to build operating apparatus and optimise business processes and supply chains, (3) Have economically effective operations.
Joining the sustainability rating programme, enterprises will get a lot of benefits such as raising their reputation to customers, demonstrating their commitments to corporate social responsibility (CSR), improving business efficiency, identifying opportunities and risks, building up relations with employees, and enhancing competitive advantages.
The rating announcement ceremony is expected to take place in October in Hanoi.
(*) Investar Research & Advisory is an Associate Member of Vietnam Business Council for Sustainable Development (VBCSD), and we have been actively getting involved in promoting the awareness and application of sustainability reporting in Vietnam.