ESG serves as 'passport' for businesses to enter global value chains

On September 24, the Lam Dong Provincial People's Committee, in partnership with the Vietnam Chamber of Commerce and Industry (VCCI), convened a forum to assist over 100 SMEs in adopting ESG standards and digital governance. The event aimed to empower local businesses to meet stringent global trade demands and enter international supply chains. The forum, titled "Passport to the Global Value Chain," brought together representatives from more than 100 domestic enterprises and organizations.

The discussions centered on helping SMEs understand ESG practices and the role of digital transformation in international economic integration. Experts and managers explored new requirements imposed by major markets such as the EU and the U.S., as well as practical methods for implementing ESG, digital governance, and transparency. They also shared financial strategies for exporting businesses undergoing the dual transition and offered guidance on meeting the demands of international buyers and import markets.

Mr. Bui Trung Nghia, Vice President of VCCI, emphasized that international trade rules are rapidly evolving, with developed markets increasingly focusing on factors beyond price, quality, and delivery schedules. These factors include raw material origins, environmental impact, carbon emissions, green products, social responsibility, and corporate governance transparency. ESG requirements, product traceability, and green technical standards are becoming standard expectations.

Importers, large corporations, and investors are demanding that suppliers provide data, proof, and accountability throughout production processes. To succeed, Lam Dong enterprises must offer products that meet market standards, backed by verifiable data and robust management systems. This foundation is crucial for securing orders, expanding market reach, and engaging in higher-tier global value chains.

For Lam Dong Province, these requirements are particularly important due to its ecosystem of more than 30,000 active enterprises across various sectors. Many key products from the province, such as coffee, agricultural produce, vegetables, processed foods, and textiles, have significant potential for deeper international market integration.