Remaining challenges in implementing the ESG criteria

This is the assumption of a specialist at a Seminar themed “Implementing the ESG criteria for SME in Hanoi – Driving force for sustainable development and competitiveness enhancement”.

From the left to the right: Mr. Nguyen Quyet Chien, Secretary General of the Vietnam Union for Science and Technology Associatons; Mr. Nguyen Trong Uyen, Director of the Institute for Economics and Development co-chair the Seminar

The seminar was jointly organized on September 18^th 2025, under the co-chair between the Vietnam Union of Science and Technology Associations and Institute for Economics and Development.

Speaking at the seminar, Mr. Nguyen Quyet Chien, Secretary General of the Vietnam Union for Science and Technology Associatons emphasized the implement of the ESG criteria is no longer optional but compulsory for businesses to survive, develop and enhance competitiveness in global value chain.

Assoc. Prof. Dr Hoang Van Phu, Chairman of the Scientific Council of the Institute for Economics and Development, hosted the Seminar and presented Report for guidelines

According to Assoc. Prof. Dr Hoang Van Phu, Chairman of the Scientific Council of the Institute for Economics and Development, with numerous, active enterprises, the capital of Hanoi is acknowledged of the need to actively introduce policies to promote and support enterprises in implementing the ESG criteria in spite of the difficulties in very first steps of implementing the ESG criteria among SME in Hanoi.

At the Seminar, Economist Dr. Ho Cong Hoa (Academy of Policy and Development) said experiences of the European Union and big economy in Asian show the trend of structuring the ESG legal frameworks, more and more tightened, putting pressure while encouraging businesses to renovate. These international experiences are lessons for SME in Vietnam in general and SME in Hanoi in particular in the process of implementing the ESG criteria.

Dr. Ho Cong Hoa, Academy of Policy and Development reported at the Seminar

Having the same opinion with Dr. Ho Cong Hoa, Dr. Nguyen Thi Luyen (Institute of Policy and Strategy Studies) believed that in order to apply international experiences to enhance the implement of the ESG criteria of SME, it is essential to be aware of obstacles and challenges that these forces are facing. Accordingly, these obstacles and challenges are resulted from objective factors such as weak and asynchronous legal framework, and subjective factors from internal capacity of enterprises, including the unawareness of the enterprises about the ESG; the restricted budget, the insufficient and unsuitable sources and technology; the lacking in labour forces and expertise relating to the ESG.

It is of significance to have synchronized solutions to enhance the implement of the ESG criteria among enterprises.

Nguyen Thanh Khiet, Head of the Training Department of the Vietnam Association of Small and Medium Enterprises Hanoi, said that Governance (G) is the most vital element because efficient, sustainable governance is foundation for successfully implementing social and environmental criteria. Along with governance capacity, labour forces training on the ESG for SME in Hanoi is a strategic issue for ensuring sustainable development, international integration capacity, and competitiveness enhancement of the private economic sector.

Coming from the Vietnam National University, Hanoi, Dr. Hoang Anh Tuan highlighted the role of applying science, technology and digital transformation as a lever for implementing the ESG criteria among SME in the capital of Hanoi. Hanoi city should be the first to build an ESG framework, digitalized for SME, with digital report tools and ensure synchronization with international standards. Furthermore, the founding of green support fund will encourage SME invest in modern technology systems such as ERP, IoT and AI for serving the efficient compliance of the ESG criteria process.

The specialists at the Seminar have the same point of view with the assumption, in order to help SME in Hanoi get through obstacles, challenges in the process of complying and implementing the ESG criteria on environment, society and governance, it is essential for the State – Businesses – Institutes /Schools – Society to coordinate.

Quynh Anh