Supporting SMEs On Their Investment Readiness And ESG Impact Journey

The 2024 Vietnam ESG Investor Conference, organized by Raise Partners and Vietnam Innovators by Vietcetera, focuses on building strong partnerships and resilient systems for sustainable finance and ESG (Environmental, Social, and Governance) investing in Vietnam.

With the central theme of "Building a Resilient Future for Vietnam," the conference convenes investors, business leaders, government representatives, start-ups, experts, academia, and the media to foster meaningful collaboration and accelerate green and inclusive growth in Vietnam.

Among the key sessions at the conference was the panel discussion on “Supporting SMEs on their Investment Readiness and ESG Impact Journey.” This session featured Rong Yu, Head of ESG Solutions for ASEAN and Greater China at S&P Global Sustainable1.

With SMEs making up 98% of Vietnam’s enterprises, their contribution to both the economy and ESG impact is critical. The session provided valuable insights on how these SMEs can tap into resources to become investment-ready and enhance their ESG performance.

The Critical Role of SMEs in Vietnam

Of the 865,000 enterprises operating in Vietnam, about 98% are SMEs. These businesses form the backbone of the Vietnamese economy and play a critical role in the nation’s quest to build a resilient and sustainable future.

SMEs' contribution to the economy is significant, but their potential impact on ESG is equally important. To harness this potential, SMEs need to access the tools and resources necessary to secure financing and enhance their profiles as social and environmental impact businesses.

Insights from Rong Yu and the Panel Discussion

Rong Yu leads S&P Global Sustainable1’s ESG business in Mainland China, Hong Kong, Taiwan, and ASEAN countries. Delivering sustainable solutions across asset classes for investors and corporates, Rong drives S&P Global’s continued expansion and leadership in Asian sustainable finance markets.

With over a decade of experience in sustainability and climate change, Rong has held various ESG-related roles at PwC Strategy the World Bank, and the United Nations. She is a regular speaker and respected commentator on ESG and sustainable finance issues.

During the panel discussion, moderated by Xavier Depouilly, General Manager of Indochina Research, Rong was joined by Son Nguyen, Associate Vice President at Impact Partners, Impact Investment Exchange (IIX); Yen Do, Investment Manager at Beacon Capital; and Le Duy An, Director of Bo Cau Services Company. They explored how SMEs can leverage resources to become investment-ready and improve their ESG impact.

Pathways to Investment Readiness for SMEs

1. Understanding ESG and Sustainability Metrics: SMEs must familiarize themselves with ESG and sustainability metrics, and reporting standards. This understanding helps them meet investor criteria and attract necessary funding.
2. Leveraging Technological Solutions: Technology is critical for managing and reporting sustainability impacts. SMEs should invest in technologies that enable effective tracking and reporting of their performance.
3. Building Strong Governance Structures: Robust governance ensures accountability and transparency in ESG and sustainability practices. SMEs should establish clear governance structures to support sustainable growth.
4. Engaging Stakeholders: Active engagement with stakeholders, including employees, customers, and the community, is crucial. This engagement builds trust and enhances the SME's ESG and sustainability profile.
5. Accessing Financial Tools and Resources: Various financial tools and resources are available to support SMEs in their ESG and sustainability journey. These include grants, loans, and investment funds targeted at sustainable businesses.

Best Practices for ESG and Impact Measurement

Experts shared best practices for robust ESG and impact measurement during the panel discussion:

1. Set Clear Goals: SMEs should define clear, achievable ESG and sustainability impact goals that align with their mission and values. This clarity helps measure progress and demonstrate commitment to sustainability.
2. Regular Reporting: Consistent and transparent reporting on ESG and sustainability impact metrics is essential. This practice helps track progress and inform investors and stakeholders.
3. Continuous Improvement: ESG is a continuous journey. SMEs should regularly review and update their ESG and sustainability strategies to adapt to changing circumstances and emerging best practices.

S&P Global’s Role in Supporting SMEs

At S&P Global, the focus is on powering the markets of the future. Throughout its history, the world's leading organizations have relied on S&P Global for Essential Intelligence to make decisions with confidence.

S&P Global Sustainable1, the business group dedicated to sustainability, matches customers with sustainability products, insights, and solutions from across S&P Global’s divisions to help meet their unique needs. The comprehensive coverage of global markets, combined with in-depth sustainability intelligence, provides financial institutions, corporations, and governments with expansive insights on business risk, opportunity, and impact as they work towards a sustainable future.

Supporting SMEs on their investment readiness and ESG impact journey is crucial for the sustainable development of Vietnam. With the right tools, resources, and strategies, SMEs can enhance their contribution to the economy while making a positive impact on the environment and society.

The 2024 Vietnam ESG Investor Conference provides a platform for these discussions, highlighting the importance of collaboration and innovation in driving sustainable growth. S&P Global is committed to providing the Essential Intelligence and solutions needed to power this journey towards a sustainable future.