Part 3: ESG in Sustainable Economic Development Across Regions

In contrast, regions such as the Central Highlands, the Mekong Delta, and the Northern Highlands face significant challenges in applying ESG. The Mekong Delta, in particular, struggles with severe issues like saltwater intrusion and land subsidence, which directly affect production and livelihoods. Only 12% of businesses in this region report having an ESG strategy, a concerning figure compared to other areas.

These disparities not only reflect issues of infrastructure and financial resources but also highlight inconsistencies in policy support between the central and local levels. Prioritizing sustainable development in areas heavily affected by climate change must become a focal point in Vietnam’s national ESG strategy.

ESG plays a vital role in promoting balanced and sustainable growth across economic regions. The Environmental pillar, with solutions like waste management and renewable energy, helps mitigate negative impacts from climate change. In the Mekong Delta, several businesses have experimented with circular agriculture models, such as growing mushrooms on leftover rice straw from harvests.

The Social pillar focuses on improving labor conditions and enhancing community welfare. For instance, energy companies in the Central Highlands have invested in vocational training programs, creating stable employment opportunities for local workers.

The Governance pillar acts as a bridge, ensuring transparency and efficiency in development projects. Businesses in the Red River Delta have pioneered the application of digital technologies in governance processes, reducing risks and optimizing costs. These practices not only enhance productivity but also build trust with international partners.

To advance ESG in underdeveloped regions, three key solutions must be implemented.

Firstly, the government should introduce tailored policies focusing on technical and financial support for small and micro-enterprises. Subsidized loans and tax reduction programs for businesses in the Mekong Delta and the Northern Highlands can serve as strong incentives.

Secondly, developing pilot ESG projects in each economic region is essential to create exemplary models. For example, afforestation programs and eco-tourism development in the Central Highlands can be combined with raising community awareness about environmental protection.

Thirdly, greater collaboration between domestic and international businesses is needed. Connecting regional enterprises with global partners will help expand investment opportunities, facilitate technology exchange, and share effective ESG practices.