Dual goals imperative for businesses

At a cross-border dialogue session on June 13 in Hanoi on sustainable development based on incorporating sustainability and innovation, resilience strategy, repositioning supply chains, and robust governance amid global turbulence, Josse Roussel from the Paris School of Business, senior expert in human capital, finance and sustainable development, emphasised institutional governance. The establishment of regulations and legal frameworks will be an incentive system to lead businesses towards sustainability.

“Without guidance from governments and organisations, businesses may not voluntarily follow this path. However, with a strong commitment from institutions, businesses are encouraged and even see that pursuing sustainability is economically rational,” he said.

Roussel explained that when businesses produce goods or services to serve customers or provide to the market, they also create negative impacts such as pollution or carbon emissions. These costs, called social costs, are often not taken into account by businesses.

“Mechanisms such as taxes or emissions trading systems help realise this social cost, enable businesses to consider the environmental impact of their operations,” he said.

He added the combination of effective governance and sustainable development. Because businesses will not only rely on internal resources but also need support from a clear legal framework and appropriate incentive policies from the state. Therefore, businesses can create long-term value for shareholders and also for the community, as well as limit negative impacts on the environment.

“This is the intersection between good governance and sustainable development, helping businesses operate effectively and adapt to the current context,” Roussel said.

Praveen Tekchandani, leader and partner of EY Singapore’s Climate Change and Sustainability Services, said that sustainable development is no longer an option but has become an essential part of the success of the business itself. This requires defining sustainable development in the right context, both meeting short-term requirements and ensuring long-term value.

“In fact, the resilience and expectations of stakeholders on sustainable development have increased sharply in recent times. While social and governance factors have been implemented by businesses for decades, climate change and the goal of net-zero are emerging challenges and are receiving much attention,” he said.

For example, Tetra Pak Binh Duong’s beverage carton factory has achieved BRCGS AA+ certification for quality management from the British Retail Consortium, and is the first factory to achieve this rating in Vietnam. By applying LEED standards, the factory has saved two million litres of water, reused and recycled 90 per cent of waste, and reduced 4,000 tonnes of carbon emissions into the environment each year. The company aims to completely eliminate greenhouse gas emissions from all operations by 2030.

Lego’s high-tech factory in Binh Duong, which was put into operation in April, is also the group’s first factory to be developed in a green, sustainable, and environmentally friendly direction. In the plan, the main source of power used for production will be renewable energy provided from the solar farm right next to the factory.

Can Van Luc, who is a member of the Prime Minister’s Economic Advisory Council, said that in the current context, enterprises have to survive before thinking about sustainable development.

“However, to survive in this turbulent business environment, enterprises are struggling with many challenges. The most obvious challenge in recent years is geopolitical risks that are increasingly complex, unpredictable, occurring rapidly, with a wider scope of influence and are more difficult to predict than before. These risks affect the short term and also the next 5-10 years,” Luc said.

He said that Vietnam, Singapore, and other ASEAN countries are affected similarly, especially since they are heavily dependent on the world’s two largest trading partners, the US and China.

“Among trade wars, technology conflicts, and other troubles around the world, businesses in Vietnam and in the region are deeply affected,” he said.

In order to survive in the short term, the expert said that businesses need to implement some solutions, like closely monitoring the situation, assessing how geopolitical risks affect their industries and sectors, and proactively building adaptation plans. In addition to relying on the government’s negotiation efforts and other support policies, businesses themselves cannot be passive.

“In the short term, businesses focus on immediate response solutions, but in the long term, green and digital transformation - or dual transformation - cannot be ignored,” Luc said. “This model has been applied by many enterprises in some localities nationwide.”

According to Luc, so as to turn sustainable development requirements into competitive advantages, instead of worrying about volatility, uncertainty, complexity, and ambiguity, businesses should have vision, understand the domestic, international and industry situation, and ensure clarity and agility.

Lawrence Chan, head of Vietnam-Singapore Industrial Parks (VSIP) in Vietnam, said that along with the process of industrialisation, urbanisation and increased energy use, emissions in Vietnam have increased significantly over the past few decades.

“This fact highlights the urgency of implementing sustainable industrial models in Vietnam,” Chan said.

He added that the Vietnamese government is actively promoting the construction of eco-IPs to achieve the goal of sustainable economic development and environmental protection.

VSIP has now expanded its network to 22 IPs across Vietnam and improved the sustainable criteria, from environmental standards to climate change.

“We only accept manufacturers in light and non-polluting industries. VSIP’s parks are built on land higher than flood levels, and investing in grey, green and blue infrastructure to increase flexibility and adaptability,” he said.

“During our work with clients, we have seen an increasing demand for green IPs, especially from multinational corporations. They are increasingly integrating sustainability into their factory site, prioritising IPs with renewable energy and carbon monitoring solutions,” Chan added.

Tran Minh Giang, deputy head, Financial Markets Legal Department Ministry of Finance

From the perspective of enterprises, decisions are often driven by immediate interests and regulatory obligations. Therefore, any shift towards sustainable practices must be underpinned by both clear incentives and a supportive policy environment. As discussed during the recent panel session, collective action initiatives could serve as a valuable foundation to build shared understanding and foster early collaboration among stakeholders on sustainability.

In reality, businesses are approaching sustainability in two distinct ways.

Firstly, many still operate on a “minimal compliance” basis, doing just enough to meet legal requirements. This approach often results in a focus on procedural formality rather than substantive outcomes, distancing business activities from the core objectives of sustainability. In such cases, environmental, social, and governance becomes a checkbox exercise, rather than a meaningful strategic direction.

Secondly, a growing number of enterprises are beginning to take a proactive stance. These businesses recognise sustainability not merely as a regulatory obligation, but as a tool to enhance competitiveness, manage risk, attract investment, and strengthen stakeholder trust. This perspective aligns closely with global trends and should be further encouraged.

In my view, existing regulations provide a necessary framework, but they are only part of the equation. To truly advance sustainable development, we must go beyond compliance and foster intrinsic motivation within enterprises. This requires mechanisms that not only enforce, but also empower.

One pathway is to enhance corporate governance structures, particularly through the establishment of sustainability committees within boards of directors. These bodies can act as internal champions, driving meaningful change and aligning company strategies with long-term sustainability goals. Internal pressure and leadership often prove more effective than external enforcement alone.

We must also listen closely to the business community. Understanding why certain enterprises remain hesitant to embrace sustainable practices, whether due to perceived costs, lack of clarity, or structural barriers, is crucial. Only by addressing these concerns can we design policies and support mechanisms that resonate with real-world business dynamics.

Ultimately, sustainable development should not be viewed as an expense, but as an investment, one that yields long-term value for businesses, society, and the environment alike.

Yap Kwong Weng, CEO, Vietnam SuperPort

Vietnam has long been one of our priority markets. Since establishing operations in Vinh Phuc province in 2009, we’ve focused on logistics, warehousing, and distribution. Today, we are proud to contribute to Vietnam’s transformation through the development of the SuperPort, a multimodal logistics hub integrating road, rail, air, and waterways.

This concept, first shaped during the pandemic and developed further by chairman Robert Yap, reflects our belief in Vietnam’s long-term strategic value.

Sustainability lies at the heart of this vision. We have committed to achieving net-zero emissions by 2040, 10 years ahead of Vietnam’s national target. Our strategy includes developing clean-energy park-in-park zones powered by solar, battery systems, and smart infrastructure. This approach is being adapted and scaled across our Vietnam facilities.

We are also investing in local partnerships, from small- and medium-sized enterprises to government agencies, to drive innovation. With Vietnam Post, we are piloting last-mile delivery solutions that align with our green logistics goals.

However, sustainability is not without its challenges. It requires leadership, regulatory support, and financial trade-offs. But the future is clear: businesses that fail to decarbonise will be left behind. Clients will not accept supply chains that emit excessive carbon, especially from warehousing and transport.

We believe regional connectivity enhances sustainability. Our expansion into Cambodia, Malaysia, and China, particularly through rail and inland waterways, supports low-emission freight corridors. Vietnam’s rail links with China, including future integration with our SuperPort, will be key in this effort.

Ultimately, we are committed to building not only a logistics network but a resilient, future-proof ecosystem that meets the demands of global trade and climate responsibility. Vietnam’s growth potential is extraordinary, and we are honoured to be part of its sustainable future.