Private sector is encouraged to contribute to sustainable development

Impact investment is capital directed toward projects that generate social or environmental benefits. This is an innovative investment strategy to boost the private sector’s contribution to sustainable development. In Vietnam, enterprises are aligning with this approach and focusing not just on profits but also on creating positive societal and environmental impacts. The role of the private sector in achieving Sustainable Development Goals is gaining recognition.

Vietnam has around 22,000 social impact enterprises, and the number is growing every year. Small and micro-sized enterprises make up 89% of these businesses, and 72% of them report annual revenues of less than 196,000 USD. These enterprises operate in agriculture, aquaculture, food processing, education, training, consultancy, business support, and handicrafts.

At the Vietnam Impact Investment Forum 2024 on Thursday, themed “Promoting Impact Investment for a Sustainable Future”, experts highlighted the importance of supporting small and medium-sized enterprises while focusing on investments that empower women and promote gender equality.

Nguyen Vu Anh Ngoc, a consultant at Vriens & Partners, said: "Social impact enterprises that support women need to promote targeted policies and mechanisms. Overcoming gender stereotypes and social barriers, coupled with improved financial access and resources, is crucial for the development of women-led businesses."

With Vietnam's impact investment ecosystem rapidly expanding, Vietnam has the potential to emerge as a leader of impact investment in Southeast Asia, drawing significant international capital in the social impact sector.

To capitalize on this opportunity, Vietnam needs to implement appropriate financial solutions and policies to accelerate the growth of social impact enterprises, fostering a sustainable future driven by private sector innovation and investment.