Deputy Prime Minister Nguyen Thien Nhan has recently approved the project to establish Business Council for Sustainable Development sponsored by Vietnam Chamber of Commerce and Industry (VCCI) to assist businesses in implementing orientation and strategy of sustainable development in Vietnam from now to 2020. On this occasion, Vietnam Business Forum's reporter Nam Pham discussed the issue with Dr. Vu Tien Loc, VCCI President.
Please tell us the reason to establish Business Council for Sustainable Development?
The concept of “sustainable development” started in 1970s. So far, 191 countries in the world have developed sustainable development programmes (also called Agenda 21) nationwide and over 6,500 Agenda 21 of sector and local scales.
On August 17, 2004, Vietnam government has approved Strategic Orientation for Sustainable Development in Vietnam. The orientation is a frame strategy including main orientation serving as legal foundation for related ministries, sectors, localities, organizations and individuals to implement and as commitments of Vietnam to international community. On September 27, 2005, the Prime Minister decided to establish National Council of Sustainable Development. On February 24, 2009, the Prime Minister signed Decision 248/QD-TTg on the function, task and organizational structure of the National Council for Sustainable Development. It is an important process to create a linkage framework considering sustainable development as central factor assigning responsibilities and developing related measures concerning sustainable development.
The approval of strategic orientation on sustainable development in Vietnam is an important step, creating firm foundation for sustainable economic growth. The active participation of business community in the implementation of the strategic orientation through VCCI – representative of business community and employers in Vietnam, is the decisive factor for the success and dynamic partnership connecting government, businesses and other social sectors for common goal and interests.
With VCCI function and role regarding Vietnamese business community and Vietnamese membership of WTO, it is most appropriate and necessary to establish Business Council for Sustainable Development to help business community and associations increase their understanding and knowledge on sustainable development and assist them in implementing sustainable development, international integration and Agenda 21 in Vietnam.
What are the objectives of the Council, to be more specific?
The main goal of the Council from now to 2020 is to make Vietnamese business community sustainable, dynamic and integrating successfully in the 21st century, so as to contribute significantly to the economic development, social progress, poverty reduction, environment protection and sustainable development of Vietnam.
One, the Council mobilizes businesses to participate in the poverty reduction programme and attain Millennium objectives of Vietnam such as over 80 percent of large enterprises supporting poor districts in infrastructure for production, processing, consumption products, technology transfer, basic services, training free of charge, generating jobs, increasing income, narrowing the gap between rich and poor regions; and over 80 percent of businesses in education and training sector providing good services to upgrade human resources.
Two, the Council encourages businesses to apply environment friendly science and technology in the production such as clean technology and production line to reduce green house effect, saving energy, using clean renewable energy, reducing CO2 which cause climate change, saving and applying efficient management of water resources, improving waste treatment, producing environment friendly products and developing renewable industry in Vietnam.
Three, the Council promotes sustainable business strategy together with protection of environment and natural resources with over 60 percent of businesses engaging in the protection of environment, forest, water and sea resources; over 60 percent of businesses recognizing their corporate social responsibility in their business strategy and sustainable development; and over 80 percent of businesses coordinating with related ministries and agencies to develop and implement action plan dealing with climate change.
In addition, the Council also tries to improve working conditions and labour safety at enterprises.
Please tell us the organization and role of the Council?
I wish to point out that it is the Council of businesses, established by businesses and working for businesses in the interests of sustainable development of Vietnamese business community.
The Council is under the leadership of businesses and operating on the orientation of businesses. The leading body of the Council consists of business representatives with rich experiences in sustainable development. The Advisory Board of the Council comprises of representative of related ministries and agencies such as Office of the Prime Minister, Ministry of Planning and Investment, Ministry of Finance, Ministry of Industry and Trade, Ministry of Natural Resources and Environment, Ministry of :Labour, Invalids and Social Affairs, Ministry of Science and Technology, Ministry of Education and Training as well as representatives international organizations namely World Business Council for Sustainable Development (WBCSD), International Business Leaders Forum, UK (IBLF), IUCN, SNV (Netherlands).
The Council will unite businesses, economic groups, multi-national companies and related business associations to implement to role and function as follows:
· To encourage active role of businesses in implementing strategic orientation for sustainable development in Vietnam.
· To promote policy on sustainable development among foreign businesses to attract foreign investments and improve the image of Vietnam.
· To assist businesses and associations to implement policy of sustainable development and encourage them to include sustainable development objectives in their plans of action.
· To serve as a bridge between government and businesses to exchange information and increase cooperation in implementing sustainable development programme.
· To increase the advisory role and policy recommendation.
· To participate in related activities with the government, agencies and National Council for Sustainable Development.
How is the preparation of VCCI for the project?
With the role as representative of business community and employers in Vietnam, VCCI in the past years has coordinated with ministries, agencies, international organizations, business associations to implement sustainable development programmes of the business community. VCCI has supported key projects and programmes on sustainable development such as Vietnam Business Linkage Initiative (VBLI), Corporate Social Responsibility Award (CSR Award Vietnam), Asian Forum on Corporate Social Responsibility (AFCSR 2007), National programme on labour safety and insurance to 2010 and phase II (2011-2015), Project “Promoting the role of business community in social responsibility basing on principles of Global Treaty”, Project “Assisting Vietnamese small and medium enterprises in social responsibility and participation in sustainable development”, Project “Poverty reduction and development of small enterprises (PRISED)”. In addition, VCCI has also implemented initiative to increase consistency and transparency in business activities in 2009-2011 in Vietnam.
VCCI has also signed cooperation agreement with World Business Council for Sustainable Development (WBCSD) to diversify the cooperation between the two organizations. In particular, WBCSD has supported and encouraged VCCI to establish Vietnam Business Council for Sustainable Development (VBCSD).
In view of developing Vietnamese business community and successful international integration in the 21st century, VCCI has decided to establish an Office for Business Development. The Office will coordinate with related national, regional and international organizations to implement projects of business development and introduce models of business development among business community.
How is the response of businesses to activities of the Council?
VCCI has coordinated with IUCN to evaluate specific demand of businesses as well as their interests in the Council. VCCI has sent questionnaires to 117 enterprises among winners of CSR Awards in 2005, 2006 and 2007 to get their responses. As a result, 92 among 117 businesses become members including 18 founding members of the Council. Among founding members, there are big local and foreign companies such as Holcim Vietnam, BP, Unilever, Son Ha Garment, Shell, APCO, Rolls-Royce 9Vietnam), International Ltd, Dragon Clean Development, Hanoi Trade Corporation, Vinacomin, Nippon Vietnam, HCM Securities Corporation, Saigontourist, Standard Chartered Bank, Bayer Vietnam, HIPT, SGS Vietnam, ANZ Bank, TATA Steel, Vina Kraft Co., Ltd. Those companies will play an important role in developing priorities and pilot projects in Vietnam.
Thank you very much.
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