Vietnam promoting impact investment for sustainable future
The Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with the Global Affairs Canada (GAC), held the Vietnam Impact Investment Forum 2024 under the theme “Driving impact investment for a sustainable future” in Hanoi on October 24.
Impact investment is a concept that has started to gain traction in Vietnam. It involves investing in projects aimed at generating positive social or environmental effects. This innovative approach seeks to enhance the contributions of the private sector to sustainable development.
Director of the VCCI’s Enterprise Development Institute Luong Minh Huan said that in line with global trends, Vietnam has a vibrant and rapidly growing impact investing ecosystem. According to a report from the United Nations Development Programme (UNDP) and the Ministry of Planning and Investment, there are approximately 22,000 social impact enterprises in the country, with this number continuously increasing each year. Of these, 89% are classified as micro- or small-sized enterprises, and 72% have annual revenues below VND5 billion (US$196,600).
These businesses are primarily concentrated in sectors such as agriculture, fisheries, food processing, skills training and non-agricultural livelihoods, and business consulting and handicrafts.
With this rapidly developing impact investing ecosystem, Vietnam has an opportunity to become a leading impact investment hub in Southeast Asia, Huan stated, pointing to several challenges related to the legal framework and capital access.
Therefore, this forum created a platform for investors, businesses, and policymakers to build collaborative relationships, share ideas, and develop strategies to support enterprises that generate social impact, with focus on assisting vulnerable communities, particularly women, by helping social impact enterprises access investment capital, he added.
Shawn Steil, Canadian Ambassador to Vietnam, emphasised his country's commitment to promoting impact investment in Vietnam. The Canadian development cooperation programme is helping attract private capital to support sustainable and inclusive development in Vietnam, and partnering with organisations such as the Impact Investment Exchange (IIX) and the VCCI.
Canada is committed to supporting Vietnam's transition into an impact investing hub in Southeast Asia, promoting the country's progress toward achieving comprehensive development goals, the diplomat asserted.
