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Viet Nam Business Integrity Index – VBII launched
21.09.2022
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Hanoi, 21 September 2022 – Viet Nam Business Integrity Index (VBII) was introduced for the first time by Viet Nam Chamber of Commerce and Industry (VCCI) and the United Nations Development Programme (UNDP) in Ha Noi today as a tool to assess the state of business integrity of companies (refer to a sumary introduction of VBII here).   The index is built on the seven essential elements to building and operating a company based on integrity, including Culture (commitment from the top, management, employees, training);  Code of conduct, Control, Communication, Conduct (emloyee and gender/ inclusion, community, social, environment and sustainable development); Compliance, and Certification. The VBII is intended for companies in Viet Nam of all sizes, ownership, sectors, and structure, listed, privately owned, local or foreign-owned, or State-owned, any company that is interested in business integrity and sees business integrity as a bedrock principle for their growth.   Transparency, accountability, and integrity are key elements that define good governance and the existence of a Fair Business Environment in any country. In the context of the COVID recovery, good governance has gained greater attention from investors and consumers. This is reflected, for example, in the drive by governments and stock exchanges for businesses to report on their non-financial performance.  An example of this trend is the EU Corporate Sustainability Due Diligence directive and related EU and EU members’ legislations.  Disclosure while important, will have to be trusted as true and fair.   For Viet Nam to continue attracting quality investments, low level of corruption and higher levels of transparency are very important.  Businesses conduct can be a good or bad contributor to the level of corruption in the country.   Viet Nam is one of the few countries that has shown incremental progress in the Transparency International’s Corruption Perception Index, going up by 26 places globally (from 113 in 2017 to 87 in 2021); and Rule of Law Index by the World Justice Project, as an exception among ASEAN countries in moving up in ranking at 88.   However, some sectors remain more vulnerable to corruption than others. For example, a joint business survey report published by VCCI and UNDP last June showed that at least 1 out of 3 businesses participating in public procurement recognized the need of informal payments for winning government contracts. Even more concerning is that the culture of commissions or informal payments is so embedded that businesses are willing to pay even when nobody asks for it.   “Viet Nam Business Integrity Index is a tool that if used by businesses in an honest and transparent manner, will contribute to improving the country’s standing and brand, building trust based on data and information, attracting investments, generating wealth and improving lives of citizens,” said UNDP Deputy Resident Representative Patrick Haverman in his opening remarks. “We cannot promote business integrity in isolation. It is an integral part of responsible business conduct.  Business integrity therefore requires a holistic approach.  For integrity to work, the environment, workers, supply chains, government agencies, consumers, the community as stakeholders have to be respected.  Businesses need to be profitable by enhancing the operating environment and by meeting minimum expectations of stakeholders.  In deciding on investment sites, global companies will consider the state of respect in the countries for responsible business conduct with good governance and the rule of law as critical factors”.   VBII has been supported by the FairBiz project, a UNDP regional initiative that is funded by the UK Government under ASEAN Economic Reform Programme to promote a fair business environment in six ASEAN countries (Indonesia, Malaysia, Myanmar, the Philippines, Thailand, and Viet Nam).   “The UK – VN relationship continues to go from strength to strength as we are going to mark 50 years of diplomatic relationship next year,” said Deputy Head of Mission, British Embassy Ha Noi, Marcus Winsley. “Together with Vietnamese and international partners, we stand ready to support Vietnam to achieve your ambition and deliver your commitment towards a fair business environment, an effective economic reform and in various other areas including climate change, education, healthcare and innovation”.    Companies’ disclosure, transparency, and corporate integrity policies have a direct impact on the level of business integrity more broadly in the market. In fact, businesses are increasingly realizing the value and benefits of business integrity. The experience of many businesses that have put business integrity first shows that they have benefited from the attention and appreciation of investors, suppliers, buyers, and customers. This is a clear, proven advantage for those companies wanting to access international markets and participate in global supply chains.   “Sustainable development is no longer a choice between ‘yes’ and ‘no’, but has become the survival, the only way for businesses to exist and develop at present and in the future. VCCI Vice Chairman Nguyen Quang Vinh emphasized. “Viet Nam Business Integrity Index developed and launched today by VCCI and UNDP is a new step to bringing Vietnamese businesses closer to international standards of transparency and integrity as well as helping businesses overcome difficulties in integrating integrity into their production and business activities”.   VBII is a tool that needs to be maintained and improved based on experience of working.  UNDP is committed to further working on business integrity and supporting VCCI in using and improving this tool. Promoting transparency and integrity continues to be a central point of the UNDP’s Country Programme Document for Viet Nam (2022-2026).

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In recent years, a number of free trade agreements (FTAs) have been negotiated and signed, facilitate business to deepen international integration, creating many new cooperation opportunities. Therefore, this requires businesses to ensure transparency and adopt ethical business practices. In fact, businesses  with proactive implementation of business integrity are highly appreciated by potential investors, customers and business partners… especially this is an important advantage to join global supply chains. On past November 26th, the Vietnam Chamber of Commerce and Industry (VCCI), UNDP Vietnam coordinated with the Vietnam Textile and Apparel Association (VITAS) to organize an online training workshop titled“Guidelines for ethical business practices and professional conduct”. According to Mrs. Dinh Thi Bich Xuan, Deputy Director General of Office for Business Sustainable Dvelopment,VCCI, the training is a key activity aimed to build the capacity of businesses in promoting business integrity and helping to minimize fraud and business risks towards good corporate governance. At the program, Mr. Truong Van Cam, Vice President of VITAS, the co-organizer of the workshop highlighted the importance of an appropriate code of conduct and professional conducts contributing to form a fair and transparent business environment. Through presentations of speakers and vigourous discusiion, businesses have better understood about the essential role of risk management and ethics regarding to business development in the garment industry. As a result, businesses are able to effectively apply step by step the code of conduct to resolve ethical dilemmas in business operations. The training course was provided by experienced experts from PWC Vietnam. The representatives from British Embassy in Hanoi, UNDP, VCCI  attended with 70 participants from businesses in the garment industry, middle level managers, human resources, legal officers, internal audit, account-finance officers…  

07.12.2021
800 Views
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Currently, Environmental, Social and Governance (ESG) criteria have become the deciding factor for the  world’s top investors. Therefore, business investment decisions are highly dependent on the outcome of assessing how businesses address issues related to ESG. This criteria requires investors and invested companies to redefine risks in terms of traditional business models as well as opportunities to create sustainable added value in the future. Through the gereous support of the UK Prosperity Fund to ASEAN under the Economic Reform Programme within the UNDP Regional Project “Promoting a Fair Business Environment in ASEAN”, the Vietnam Chamber of Commerce and Industry (VCCI), UNDP Vietnam in collaboration with Vietnam Association of Consumer Goods Development (VACOD) co-organized an online training workshop titled “Incorporation of Environmental, Social and Governance criteria in business” on November 24th in Hanoi. At the program, Mrs. Diana Torres, Assistant Resident Representative of UNDP Vietnam emphasized in the opening speech that ethical business practices and responsibility to the community, environment, society are increasingly important to improve transparent corporate governance and legal compliance. Following this, Mrs. Dinh Thi Bich Xuan, Deputy Director General of Office for Business Sustainable Development, VCCI also highlighted that the training course aimed to support businesses to promote business integrity in general and futhermore raise better awareness of appropriate approach to ESG advanced practices. The training course was delivered by experienced experts from PwC Vietnam who have deep knowledge in risk management, internal control and international finance. The course was successfully organized with active participation of 200 delegates including representatives from British Embassy in Hanoi, UNDP Vietnam, VCCI and participants from businesses, middle  level managers, legal officers, human resources, internal audit, account-finance officers…The majority of businesses evaluated that the training content is practical, provided fundamental knowledge on methods of assessing business situations in relation to sustainable development and guided businesses to meet ESG reporting requirements and information disclosure.

07.12.2021
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The “Governance – Business Initiative – GBII” implemented by the Office for Business Sustainable Development (SDforB) of VCCI funded by the UK Government, ASEAN Economic Reform Program through UNDP’s Regional Project on “Promoting a Fair Business Environment in ASEAN”. We are looking for a local consulting company and/or a national consultant team who have appropriate qualification and experience to develop the Vietnam Business Integrity Index. Please view ToR here for detail.   Method of bidder selection: Shorten national shopping by a technical proposal Deadline for submission of technical: before 17 pm, 20th October 2021 Submission form: send email to xuandtb@vcci.com.vn Contact person: Ms Xuân, Tel: 024 35743492

17.10.2021
615 Views
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The “Governance – Business Initiative – GBII” implemented by the Office for Business Sustainable Development (SDforB) of VCCI funded by the UK Government, ASEAN Economic Reform Program through UNDP’s Regional Project on “Promoting a Fair Business Environment in ASEAN”. We are looking for a local consulting company and/or a national consultant team who have appropriate qualification and experience to deliver these trainings. Please view ToR here for detail. Method of bidder selection: Shorten national shopping by a technical proposal Deadline for submission of technical: before 17 pm, 20th October 2021 Submission form: send email to xuandtb@vcci.com.vn Contact person: Ms Xuân, Tel: 024 35743492

08.10.2021
566 Views
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Ha Noi, 28 September 2021 – Fifteen business associations have signed the Viet Nam Business Integrity Pledge to express commitment on corporate compliance and  business integrity and transparency.   This was told at an online Business Forum in Ha Noi today by the Viet Nam Chamber of Commerce and Industry (VCCI), the UN Development Programme (UNDP), and the British Embassy in Ha Noi.   The Forum – “Culture of Business Integrity: Pathway to Sustainability and Success” – brought together nearly 130 representatives from businesses, government agencies, international organizations, experts, academia and press agencies.   Women play an increasingly important role in business, with female-owned enterprises occupying nearly 30% of the total enterprises and 32% managers of enterprises being women. The 15th member of the Business Integrity Pledge is the Viet Nam Association for Women Entrepreneurs.   “I believe an effective business environment, rooted in transparent corporate governance, is a crucial factor to foster bilateral investments and long-term trade partnership between the UK and Viet Nam. The UK sets a high value in merging the ethics and integrity principles into corporate governance since it has long been more than a matter of business’s branding. It forms a wider and more sustainable value not only in financial return but also in minimising negative impacts on the society.” Mr. Marcus Winsley, Deputy Head of Mission, British Embassy in Viet Nam said in his opening speech.   On this occasion, the Advisory Group of Viet Nam Business Integrity Network – VBIN – made it first apperance. The VBIN is the first collective action initiative led by business to promote a culture of business integrity and anti-corruption compliance. The mission of the VBIN is to mobilize collective efforts of the business community to comply with rules and regulations related to business integrity and to adopt good business integrity practices, thereby improve corporate governance, ensuring competitiveness and sustainability of Vietnamese businesses. Fifteen Government agencies and businesses, and 5 experts have joined the VBIN Advisory Group.     “Though significant improvements recorded, nearly half of businesses surveyed in the Viet Nam Provincial Competitiveness Index 2020 reported paying informal charges,” UNDP Deputy Resident Representative in Viet Nam Patrick Haverman noted. “Further progress in embedding transparency, integrity, accountability, and anti-corruption into Vietnamese companies’ operations will be critical in the socio-economic covid recovery”.   Mr. Haverman highlighted important aspects for successful economic rebound, namely Business integrity being a key enabler in doing business in Viet Nam; Companies committed to integrity, transparency, and investing in responsible and sustainable practices being more resilient to crises such as the Covid-19 pandemic and poised to long-term success; and Collective action required to help build a busines integrity culture.   The achievements and good practices shared at the Forum are the results of three years’ partnership between VCCI, UNDP and the UK Government under the  UNDP’s Regional Project “Promoting A Fair Business Environment in ASEAN” – Fair Biz – funded by the UK Government under ASEAN Economic Reform Programme. More than 800 firms and business associations have improved their knowledge and skills to apply internal control and codes of conduct in their businesses. Four companies have received in-house technical assistance for devleloping and strenthening code of conduct or internal controls.   “COVID-19 is a test for business integrity.,” Mr. Nguyen Quang Vinh, VCCI Secretary General, emphasized. “There is something companies can do to protect themselves by putting an integrity agenda at the heart of their response to the challenges. Businesses are also recommended to actively join a business led initiative like Vietnam Business Integrity Network which will allow companies to help each other and collectively work together to enhance good corporate governance towards long term sustainibility” .   The Forum is one of the key activities of the Government and Business Integrity Initiative (GBII) implemented by VCCI and UNDP in Viet Nam under Fair Biz. This project aims to support enhancing business integrity and transparency, strengthening laws and policy in anti-corruption, and effective dispute resolution mechanism in Viet Nam.    

28.09.2021
653 Views
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On past 8th July, 2021, Vietnam Association for Women Entrepreneurs (VAWE) became the 15th member which have signed the Business Integrity Pledge and expressed strong support to the objectives of  Vietnam Business Integrity Network -VBIN. This is an initiative implemented by VCCI and a key component under the UNDP’s Regional Project “Promoting A Fair Business Environment in ASEAN”  funded by the UK Government under ASEAN Economic Reform Programme.                    Representatives of UNDP, VCCI, VAWE and spearkers were at the virtual workshop In order to make an official appearance as the 15th member of this network, VAWE coordinated with VCCI, UNDP and British Embassy to co-organize the online workshop titled “Transparent Governance- Foundation of Business Integrity” on 26th August, 2021. At the workshop, female entrepreneurs have shared the basic principles of transparent governance through corporate governance and financial management. Thereby, women entrepreneurs need to carefully consider what they are building towards good corporate governance and sustainable management system.   In addition to the participation of  the organizer board, the workshop have brought together more than 160 delegates being as VAWE Executive Committee members, women entrepreneurs, heads of management, finance and human resources departments from VAWE memberships and the 28 Provincial Women’s Business Associations. Even during the affected condition of the Covid-19 pandemic, a large number of women entrepreneurs still attended the workshop from across the country. This positive sign proved that female-owned enterprises have paid great attention to navigate their businesses in accordance to the standards of business with proactive implementation of business integrity towards long-term sustainable development in the future.

26.08.2021
420 Views