Finland and other Nordic countries celebrated the Nordic Day in Vietnam

The Embassy of Finland in Vietnam collaborated with the embassies of Denmark, Norway, and Sweden in Vietnam in organizing the Nordic Day events on March 23 in Hanoi (in collaboration with the Ho Chi Minh National Academy of Politics) and March 24 in Ho Chi Minh City (in collaboration with the Fulbright University Vietnam). The hybrid events were themed "ESG – A business model for sustainable development".

Assc. Prof., Dr Le Van Loi, Vice President of Ho Chi Minh National Academy of Politics noted that “Nordic countries are not only highly appreciated for their socio-economic development models, but are also known to the world for many other achievements such as: countries in the top of ‘the Global Happiness Index’, being awarded ‘Europe's greenest capitals’, topped the SDG (Sustainable Development Goals) index and also the leading countries in the ESG index (Environment, Society and Governance).”

According to Global Risk Profile, the ESG ranking podium of 2021 is exclusively Nordic with Finland on top, followed by Sweden (2nd) and Iceland (3rd). Norway ranks 4th followed by Switzerland (5th). This success thanks to not only the corporates with high sustainability indexes but also good governance and a comprehensive integration of ESG into policies.

In a joint statement, the Ambassadors of four Nordic countries to Vietnam (Denmark, Norway, Finland and Sweden) claimed, "In the context of globalization and increasing threats to our health and the environment, foreign direct investment capital, investment funds and buyers prefer companies or products from the countries with a sustainable orientation.”

In order to share the experience and models from the Nordics to the Vietnamese government, business and community audiences, the fourth Nordic Day in Vietnam themed "ESG - Business model for sustainable development" took place on March 23 at the Ho Chi Minh National Academy of Politics (Hanoi) and March 24 at the Fulbright University Vietnam (Ho Chi Minh City). The events witnessed over 200 online and on-site participants.

ESG, which is a concept developed by and for the private sector, takes into consideration the environmental, social, and governance factors in an investment decision-making process. Besides, ESG criteria like ensuring sustainable use of energy and resources, building up social protection schemes as well as fighting corruption are also tasks that are in the agendas of the governments. Thus, these principles also apply to the government sector as their contribution is vital to achieving a vibrant economic recovery after the Covid-19 pandemic.

At the seminar, speakers from the Nordic countries, including representatives from the public and private sectors, researchers, and academia discussed with representatives of ministries, government agencies, and the business community of Vietnam. They cover key benefits of ESG and issues such as sustainable and responsible business, climate-sensitive analysis, social dialogue, anti-corruption, public-private partnership.

Assc. Prof., Dr Hanna Silvola, Center for Corporate Responsibility, Hanken School of Economics, Finland presented about the importance of corporate governance in sustainable financing. “Both companies and their investors manage risks by screening for ESG factors. By transparently disclosing information on its environmental, social and governance practices, a company reduces the risk of investing in unsustainable businesses. ESG information has become very important issue to both investors and lenders. Financial markets will pick up the winning companies which try to solve global environmental problems”, Dr. Silvola emphasized.

The participants were interested in the experiences from four Nordic international firms, Mascot (Denmark), VARD (Norway), KONE (Finland) and Ericsson (Sweden), on applying ESG.

Mr. Bas Degeling – Managing Director, KONE Vietnam – participated as a panelist and summed up the company’s experience in applying ESG in Vietnam: “In order to apply ESG successfully, we first and foremost need collaboration, not only between the countries, the provinces but also between the companies and the individuals of a company. Second, ESG is all about the people, so we need to enhance the awareness of each person about the meaning and objective of ESG so they understand, support and integrate into their tasks.”

 

In the closing remarks, Ambassador of Finland to Vietnam, claimed: “In this interconnected world, I believe that no single country can solve global problems like climate change, biodiversity loss, and pollution on its own. We must work together! That was the reason why Finland, together with other Nordic countries – Denmark, Norway, and Sweden – are calling other countries to promote sustainable acts with us. Finland and other Nordic countries were successful by prioritizing environmental, social, and governance criteria. I reckon Vietnam is standing in front of an excellent opportunity to integrate ESG into the agenda and start writing its own success story.”

The seminar is meaningful as it introduced the Nordic experience in applying ESG to Vietnam. ESG is potential to provide answers to common challenges for both the public and private sectors, helping Vietnam reach its NetZero 2050 target, enhancing the attractiveness of the economy, and boosting economic attractiveness and sustainable development.