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
Project news
During the first two weeks of March, the campaign engaging business women in Thai Nguyen city in a free online training programme attracted 101 visits, of which 95% of visitors completed the program and got certification. Two businesses that achieved highest number of certified participants were Thai Hung Trading Joint Stock Company and Dung Tan Company Limited. However, the Thai Hung company withdrew from the project because they could not arrange the best time for the project consultant to work with the company. Therefore, it’s necessary for the project to continuously value the runner-up company that actively participated in the project with high commitment and Lucas Ltd., Co, a company operating in education service was selected instead of Thai Hưng Jsc., Company. The training program aims to provide support to businesses for proactively improving their capacity and efficiency in term of corporate governance, risk management and internal control, especially helping companies to comply with legal regulations such as Decree 05 on internal audit, Decree 71 on corporate governance, the Law on anti-corruption (2018),…Ms. Dinh Thi Bich Xuan, Deputy Director General of the Office for Business Sustainable Development, VCCI said. Therefore, two companies that met the set criteria of the programme are selected to receive a package of technical assistance from the “Government–Business Integrity Initiative–GBII” implemented by VCCI and funded by the UK Prosperity Fund as part of the regional project “Promoting a Fair Business Environment in ASEAN” under the United Nations Development Programme (UNDP). In days coming, VCCI will send an official letter to these eligible businesses to notify and ask for due diligence before officially signing MOU. At the same time, it’s really helpful to seek for specific understanding of business expectation, however, that demand requires to harmonize with scale of project which can support. Technical support is going to be provided starting March 2021.
Project news
On 19th November 2020, SDforB under VCCI in cooperation with Thai Nguyen Women Business Association hold a training course “Guiding application of internal control and code of conduct in business”. The course was organized successfully with participation of 60 local businesses. Among those about 95% participants evaluated the training substance practical, meeting the current interests of businesses and expressed the need to learn more deeply. For further training courses in-depth, VCCI collaborates with Thai Nguyen Women Business Association and promotes a campaign that engages business women in Thai Nguyen in a free online training programme at: https://kdlc.vn . This is one of the activities under the “Government –Business Integrity Initiative” – GBII funded by UK Property Fund via the regional project “Promoting fair trade in ASEAN” implemented by UNDP. The invitation is found here Time: from 1st to 15th of March 2021 The objectives: Provide in-depth knowledge in application of internal control mechanisms and codes of conduct for businesses towards international standards, comply the law. What is followed up to support businesses from VCCI? Provide 02 packages of technical assistance equivalent to 50,000,000VND/package for 02 companies with the highest numbers of certified participants (no less than 10 certificates/company applied to 1 or both thematic courses). In case there are more than 02 companies expected to meet the set criteria, the lucky draw program will be considered and announced later. Technical assistance: the selected company can choose a package of TA that support to develop/implement/evaluate/improve one of the below processes: Internal control inspection and evaluation process Sales control process Process on inventory control Salary and salary deductions control process Note: the TA package is flexible to be adjusted in compliance with the business status. How business can participate in the online training programme? Required equipment & devices: internet connected computer, smartphone Access in online training programme: Access “Online Training” to learn the Topic 1: “Internal Control Guide”; the Topic 2: “Code of Conduct Guide in business” 4 steps should be carried out as follows: Step 1: overview on the training programme Step 2: Go through all modules provided in the video clips and documents Step 3: Complete 10 questions to evaluate knowledge. Press the button “Confirm answers” to complete the learning. Step 4: Register e-certificate (you are required to provide with full and accurate information online). Who will consult directly to business? High qualified experts are invited from the Academy of Finance who are well experienced in business consultancy and stricly selected to provide the training. For further information please kindly contact: Mrs. Dinh Thi Bich Xuan, Vice Director, SDforB under VCCI, Mobile: 0988176878, email: xuandtb@vcci.com.vn
Project news
The “Governance – Business Initiative – GBII” is supported by the UK Prosperity Fund, ASEAN Economic Reform Program, within the framework of the Regional Project on “Promoting a Fair Business Environment in ASEAN” implemented by the United Nations Development Program (UNDP), and aims to improve corporate governance and sustainable development in Vietnam. We are looking a national consultant team and/or a national consulting company who have appropriate qualification and experience to conduct 2 assignments below (see TOR): Type of bidding package: service provider Main content of the bidding package: Research/Survey included 2 assignments as below: Assignment 1: Review and document good practices and measure impacts imposted by the training course on the businesses participated (the courses and the workshops) conducted by SDforB – VCCI from the end of 2018 to 2020. Time for implementation: 1st quarter 2021 (no later than 31 March 2021) Fee: 53 working days, the rate in complience with EU Cost Norm 2017 Objectives: To collect and review good practices on application of IC and CoC and/or business integrity conduct in business and to measure impacts/behaviour changes of benefited participants (business only) who attended training courses/workshops; Identify good practices, lessons and document those experience in appropriate form to disseminate and multiply the effectiveness in further. Assignment 2: Conduct a research on needs and feasibility to develop Vietnam Business Integrity (VBIN); provide and network relevant services aimed to promote business integrity. Time for implementation: 1st Quarter 2021 (preparation and implementation), April 2021 (finalizing the report) Fee: 62 working days, rate in complience with EU Cost Norm 2017 Objectives: Conduct a survey on business’s need/expectation of medium and big companies in Vietnam (both domestic and FDI; however, it is possible to consider the priority order and base the project budget for this activity and decide after the discussion; research consulting services, and affordability for those services in promoting business integrity; Research and evaluate the willingness of legal firms, consulting companies to participate in VBIN as technical experts; Research and evaluate possibility that donors and businesses including MNCs and Groups to make financial and non-financial contribution to VBIN. Research and evaluate possiblity of government agencies, international organizations and experts for participation in VBIN. Method of bidder selection: Shorten national shopping Deadline for submission of technical and financial proposal: before 30/1/2021 Submission form: send email to xuandtb@vcci.com.vn or mail to SDforB, No. 9 Dao Duy Anh Str., Dong Da District, Hanoi Contact person: Ms Xuân, Tel: 024 35743492
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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.