One of the top criteria for investors to consider is business integrity. Only when doing business with integrity can businesses create transparency for partners, shareholders, investors and customers. That is a commitment to sustainable development, building trust with partners and investors. In Vietnam, SMEs and startups are thriving, but investors have no tools to evaluate transparency and sustainability to make investment decisions. Realizing this problem, UNDP, with the funding of the British Prosperity Fund, supported VCCI to implement the Integrity Business Toolkit for Investors. This is a part of the National Startup Program 2020 and the project “Promoting a Fair Business Environment in Viet Nam”. The Toolkit is intended for all investors who are currently investing in Vietnam or are interested in start-ups and SMEs in Vietnam. This toolkit helps investors at early stage investment and angel investors. The toolkit provides investors with information on the business environment in Vietnam and enable them to approach businesses and projects that are still primitive but still ensure necessary information for investment decisions. Besides, as the development of startups in Vietnam is happening strongly, incubators, start-up accelerators, and training institutions who deliver training and prepare startups for fund-raising should also refer to and use this Toolkit. The Business Integrity Toolkit is based on the four main elements: 1) The company and its shareholders; 2) Reputation with business partners; 3) Legal compliance; 4) Internal control system. Although business integrity has a much broader scope, this toolkit mainly focuses on topics commonly considered as “anti-corruption”. For startups, business integrity should be based on the three drives: 1) Personal moral compass; 2) Quality of the management system; 3) Understanding and compliance to Vietnam’s law. Those are the foundation for the project to develop this Toolkit. (Compiled)
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Below, please kindly find the entire opening speech by Mr. Nguyen Tien Huy, Director General, Office for Business Sustainable Development – VCCI at the workshop titled “Joining hands to promote a fair business environment in Vietnam”, which devlivered on 22 December 2022 in Hanoi. Ms. Ruth Turner, Political and Development Counselor, British Embassy in Vietnam, Mr. Tomas Kvedaras, Project Specialist, Judicial Integrity Network in ASEAN, FairBiz project, UNDP’s Regional Hub in Bangkok, Thailand, Do Thuy Van, Program Manager, UNDP Vietnam, Ladies and Gentlemen, distinguished delegates, businesses, press agencies…, We are now at the last days of 2022. For businesses, this probably is the busiest time to “speed up and reach the finish line” towards achieving business production plans. Therefore, the large participation of business representatives at the workshop today demonstrates the great interest of the business community in integrity and fair business environment which is always considered as a burning topic. On behalf of Vietnam Chamber of Commerce and Industry (VCCI), I would like to express my sincere thanks today in particular to the representative of the British Embassy, the representative of UNDP’s regional FairBiz project and many businesses and media agencies for attending our workshop titled “Joining hands to promote a fair business environment in Vietnam” and also for actively joining efforts, providing support and coordinating with VCCI on the journey into forming a business integrity community during over time. Ladies and Gentlemen, “Corruption remains one of the biggest obstacles to global socio-economic development. Corruption affects the implementation of the 2030 Agenda for Sustainable Development; causes negative impacts on markets and generates unequal consequences for the most vulnerable among us. Collective action plays an important role to help implement business integrity and build a more transparent global economy.” As Mrs. Sanda Ojiambo, Executive Director of the UN Global Compact Network underlined in her statement. Sharing the same perception that corruption arises as an issue with global impacts so that a global approach to anti-corruption is required along with a vision for promoting sustainable development of the business community in Vietnam, VCCI understands that only through creating a transparent, fair, integrity business environment, we will be able to mobilize and optimize use of resources of the private sector, avoid losses and waste. From there, businesses can increase their trust and concentrate resources on business production, long-term investment which contribute to the goal of sustainable socio-economic development of the locality and the nation, also improve competitiveness and strengthen international integration. Regarding the National Anti-corruption Strategy until 2020 and the United Nations Convention against Corruption Implementation Plan, as a national organization representing and bringing together the business community and entrepreneurs in Vietnam, VCCI has taken drastic measures to promote the role of businesses, business associations and trade associations in anti-corruption through developing and building a healthy, uncorrupted business culture; creating a transparent and fair competitive business environment; raising awareness on legal compliance of businesses; eradicating step by step bribery in the relationship between businesses and state agencies; coordinating with competent agencies to prevent and promptly detect acts of harassment and bribery of officials and public servants… VCCI has built a cooperative and cohesive relationship with agencies, international organizations by implementing activities to promote anti-corruption practices in business. VCCI has been actively participating in initiatives to learn from experiences, recognize and highlight domestic efforts for the promotion of business integrity. VCCI is a member of the Executive Board of the ASEAN CSR Network, a member of the Integrity Working Group in ASEAN; is an effective partner with international organizations such as OECD, UNDP, and member of the Global Compact Network – UNGC, World Business Council for Sustainable Development – WBCSD… Ladies and Gentlemen, Since 2017, VCCI has been working closely with UNDP under the support from United Kingdom for implementing the FairBiz Project and the Government Business Integrity Initiative (GBII). Mentioning some notable results that we have achieved over the past time such as: nearly 1500 businesses have received training in internal control mechanism and code of conduct; engaging 15 business associations with nearly 13,000 members to sign a business integrity pledge; providing technical support for 05 businesses included Traphaco, Vietnam Maritime Corporation (VIMC), Fine Scandinavia, and 02 female-owned enterprises; initiating the Vietnam Business Integrity Network (VBIN) in 2021. The establishment of VBIN demonstrates great efforts of VCCI, UNDP, and British Embassy in Vietnam in raising awareness of the business community in Vietnam about business integrity, encouraging business leaders to act on business principles and practices, as well as enhancing multi-stakeholder engagement, policy dialogue which facilitates responsible business conduct, and creates a more transparent and equal business environment in Vietnam. VBIN has achieved a number of very important and encouraging initial results such as: the launching of Vietnam Business Integrity Index, assessing the current state of business integrity implementation among 30 listed companies in HCM and HN, building an online tool platform to evaluate the level of business integrity implementation. All these contents will also be shared in detail with delegates at the workshop’s program today. Ladies and Gentlemen, The outcomes of the Provincial Competitiveness Index (PCI) survey conducted by VCCI have shown that anti-corruption practices in recent years have known positive deliverables. Specifically, the rate of businesses having to pay informal fees in general in the PCI 2021 survey decreased to 41.4% compared to 44.9% in 2020. This is also the lowest level in the past 16 years (in 2006 it was 70%). The size of informal expenses also has decreased significantly over time when the proportion of enterprises spending more than 10% of revenue to pay for this type of expense is only about 4.1%, decreased twice as in 2016 (9.1%). However, there’s still a lot of space for improvement. For example, the percentage of businesses having said “The incident of troubling for handling business procedures is common” was 57.4% in 2021, higher than 54.1% in 2019-2020. That being said, in order to create a more transparent and fair business environment, in addition to the leadership of the Government and all bodies of government, the business community must proactively take collective initiatives which have a decisive meaning. Collective action saves time and resources generate significant inspirational influence, and helps accelerate systemic changes towards business integrity and transparency. To go fast, we go alone. But to go far, we must go together. That is also the spirit of SDG Goal 17: Partnership – Strengthening Cooperation. Together, we go further. Together, we go stronger. Let’s join hands and act together towards a fair business environment for all businesses in Vietnam, for the future and sustainable development of businesses themselves. And with that conviction, I would like to respectfully announce that today’s workshop is now open. Wish you all a successful meeting! Finally, I wish you and your family a Christmas season and a New Year 2023 filled with kindness, love and joy! Merry Christmas and Happy New Year!
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The virtual Global Anti-Corruption & Integrity Forum of the Organization for Economic Co-operation and Development (OECD) took place on 23-25 March with the main theme: Leading through the Crisis: Integrity and Anti-Corruption for a Resilient Recovery. Around this main topic, the Forum has conducted 50 in-depth discussions on integrity and anti-corruption in specific industries, policy issues and public-private partnerships in the context of the Covid-19 crisis. The Forum was attended by government representatives, representatives of anti-corruption and law enforcement agencies, academics, representatives of the business sector and social organizations of many countries and experts from international organizations. The Vietnamese high-ranking delegation led by Mr. Le Minh Khai, Secretary of the Party Central Committee and Inspector General of the Government Inspectorate has attended the Forum. The delegates participated in the following sessions: Integrity in practice: Launch of the OECD Public Integrity Toolkit; Integrity and corruption risks during and beyond COVID-19: Challenges, perspectives and experiences from the ground; OECD Business Integrity Roundtable (Part One): Business integrity trends and standards; The OECD Public Integrity Indicators – new measurements for policy makers and actionable change; OECD Business Integrity Roundtable (Part Two): Catalyzing Compliance in the post COVID-19 world; The relevance of statistical information for anti-corruption policies; Collective actions through fast-tracking the UNCAC. The Global Anti-Corruption & Integrity Forum of the Organization for Economic Co-operation and Development (OECD) started in 2013 as part of Integrity Week, an annual event held at OECD headquarters to support governments and organizations to strengthen integrity, build trust, and fight corruption. Source: thanhtra.gov.vn
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Around 40-50% in total 239 surveyed enterprises did not properly or fully understand the concept of internal control and code of conduct. Many Vietnamese companies conducted internal control and code of conduct formally and ineffectively. Development of internal control and code of conduct is one of the effective solutions for good corporate governance towards sustainable development ensured by strong commitment of all relevant parties. A business where internal control mechanisms are weakened with ineffective code of conduct will lead to ineffective governance and control and will increase the chances of fraud or failure in compliance with relevant laws and regulations. In another hand, a strong internal control mechanism with an appropriate code of conduct will stimulate control activities thus to detect and prevent any fraud/non-compliance as early as better. Besides, an effective internal control mechanism is helpful for leaders to analyse risks, factors and persons in charge to fix the vulnerabilities while control the activities in future, prevent the fraud/non-compliance (including bribery) by minimizing opportunities for violation and control such others as motive or justification for violation. Accordingly, bribery is prevented and anti-corruption is promoted. Under the Trade Reform Programme via the regional project “Promoting a fair business environment in ASEAN” supported by UK Prosperity Fund, VCCI in cooperation with UNDP published the manual “Guiding application of Internal Control Mechanism and Code of Conduct” for businesses in Vietnam. This manual helps business in Vietnam to step by step set up internal control mechanism and code of conduct which enhances governance capacity, manage risk and prevent violation of law. In such doing, the business community contributes significantly to promote a fair and transparent business environment in respect to the Agenda 2030 for Sustainable Development. The technical substance in the Handbook are designed to suit small and medium businesses in all forms of ownership: private enterprise, company with state capital, SOEs, FDI. The best practice and approach of development and operation of IC and CoC in the world are updated in this manual enabling either big groups or SMEs to refer for application. Please learn more details here here.
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Internal control in business help prevent and minimize risks in relating corruption, thus to protect rights of enterprises, build the foundation for sustainable development, promote business integrity. Today, July 3rd in Ho Chi Minh City, The Food and Foodstuff Association of Ho Chi Minh City (FFA) coordinated with VCCI, UNDP Vietnam and Bristish Embassy in Hanoi to organize the workshop “Enhancing internal control for businesses in food and foodstuff industry”. The workshop aimed to support the businesses in enhancing the efficiency in corporate governance through development, application and improvement of internal control which helps prevent and minimize business risks in relating corruption, ensure the company’s interest, build the foundation for sustainable development and promote business integrity. The speakers are experts from Deloitte Vietnam, the Academy of Finance and representatives from two big enterprises as Acecook Vietnam and Vinamilk who have deep knowledge and solid experience in internal control mechanism. The representatives of FFA, UNDP, VCCI and FFA’s members also attended the workshop. Through presentations of the speakers and the vigorous debates on the real-world cases, the participants have better understood the importance of risk management and internal control mechanism in the business development, better aware the approach and experience in building this mechanism. As a result, enterprises are able to identify the common risks in business operations, components of Internal Control and have an idea and plan to choose an appropriate internal control framework for the business in food industry. The workshop “Enhancing internal control for businesses in food and foodstuff industry” is an activity of “Government – Business Integrity Initiative – GBII” carried out by VCCI within the regional project “Promoting a Fair Business Environment in ASEAN” implemented by UNDP and and UK Prosperity Fund to facilitate transparent mechanism in both public and private sector, enhance the rule law and fight against corruption, build up typical examples of responsible business. This is the first project supported by UK Prosperity Fund to ASEAN under the Economic Reform Programme. The project is implemented by UNDP in cooperation with UK Government from 2018-2021. In 2019, UNDP closely collaborated with VCCI to develop “Business integrity pledge”. This pledge aims to uphold the core values of integrity, ethical behavior, and accountability, call for collective actions in promoting business integrity in Vietnam. 14 business associations have signed the pledge. Ho Chi Minh City Food and Foodstuff Associations (FFA) is one of those first movers has signed the pledge. The project for building capacity and raising awareness on business integrity was proposed by this association and has been approved by UNDP, VCCI and UK Embassy. The workshop “Enhancing internal control for businesses in food and foodstuff industry” is made in great effort of FFA and highly appreciated by UNDP, VCCI and Bristish Embassy in Hanoi. Mrs. Do Thuy Van, UNDP program officer emphasized in her speech: “UNDP, VCCI and the British Embassy in Hanoi are willing to support businesses / business associations in Vietnam to build a culture of business integrity for sustainable development and global inclusion” and “To bring the fight against corruption to a new higher level, we need more efforts from the Government and business community”.
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For successful application of internal control and code of conduct in business, the commitment and determination of business leaders, the active participation of managers and staffs are essential. Hanoi, June 19th 2020 – Today, VCCI cooperated with UNDP Vietnam and Bristish Embassy in Hanoi co-organized the training course “Guiding application of internal control and code of conduct in business” to enhance effective governance through dissemination and development of internal control and code of conduct, to facilitate businesses in compliance with the Anti-Corruption Law (2018). The training course is provided by experts from Deloitte Vietnam and Academy of Finance. The representative from British Embassy and UNDP, VCCI attended with participants from businesses, middle level managers, legal officers, HR, internal audit, account-finance officers… The training course “Guiding application of internal control and code of conduct in business” is an activity of “Government – Business Integrity Initiative – GIBE” carried out by VCCI within the regional project “Promoting a Fair Business Environment in ASEAN” implemented by UNDP and and UK Prosperity Fund to facilitate transparent mechanism in both public and private sector, enhance the rule law and fight against corruption, build up typical examples of responsible business. This is the first project supported by UK Prosperity Fund to ASEAN under the Economic Reform Programme. The project is implemented by UNDP in cooperation with UK Government from 2018-2021. Recently, UNDP closely cooperated with VCCI to develop the Manual guiding businesses in application of internal control and code of conduct. More than 150 participants have been provided training on this manual to apply internal control and code of conduct in business. With the internal control mechanism and code of conduct, business leaders easily find out the shortcoming, loopholes in the institutional system thus to make prompt solutions for adjusting and prevent risks. Those tools are helpful for managers to make appropriate decisions to improve reputation and image of the business. Mr. Nguyen Quang Vinh, VCCI Secretary General cum Director of VCCI SDforB emphasized in the opening speech: “In order to successfully implement the internal control mechanism and code of conduct in enterprises, the strong commitment and determination of business leaders in addition to the active participation of managers at all levels and entire officers and staff are essential”. Ms. Sitara Syed, UNDP’s Deputy Representative in Vietnam affirmed: “The benefits that an enterprise gains in developing and operating anti-corruption policies will be much greater than the benefit that company get from the business with corruption”. She also recommended: “Business integrity must be at the core of all value systems of the company”.
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Corruption existed in business transactions where a company could be a victim and also a culprit in this matter. Therefore, business plays a very important role and participate in positive changes towards greater integrity, transparency and accountability in all aspects of life. Hanoi, June 12th 2020 – Today, Vietnam Association of Consumer Goods Development (VACOD) collaborated with VCCI, UNDP Việt Nam, Bristish Embassy in Hanoi have organized the training course “How to resist corruption in business transaction”. The training course guided the members of business associations to prevent and minimize risks in relation with corruption, ensured the rights of businesses, promoted sustainable development, contributed to business integrity. The participant are the members of VACOD. The training course “How to resist corruption in business” is an activity of “Government – Business Integrity Initiative – GBII” carried out by VCCI within the regional project “Promoting a Fair Business Environment in ASEAN” implemented by UNDP and and UK Prosperity Fund to facilitate transparent mechanism in both public and private sector, enhance the rule law and fight against corruption, build up typical examples of responsible business. This is the first project supported by UK Prosperity Fund to ASEAN under the Economic Reform Programme. The project is implemented by UNDP in cooperation with UK Government from 2018-2021. In 2019, UNDP closely collaborated with VCCI to develop “Business integrity pledge”. This pledge aims to uphold the core values of integrity, ethical behavior, and accountability, call for collective actions in promoting business integrity in Vietnam. 13 business associations have signed the pledge. Vietnam Consumer Goods Development (VACOD) is one of those first movers to facilitate. The project for building capacity and raising awareness on business integrity was proposed by this association and has been approved by UNDP, VCCI and British Embassy in Hanoi. With the training course “How to resist corruption in business”, VACOD’s effort is highly appreciated by UNDP, VCCI and Bristish Embassy in Hanoi.