Pathway towards a sustainable economic recovery

Foreign businesses significantly contribute to Vietnam's post-Covid economic recovery, with Foreign Direct Investment (FDI) showing remarkable growth through 2023 despite global downturns. These companies prioritize Environmental, Social, and Governance (ESG) initiatives, with a majority actively improving employee well-being and social equity, and 20% dedicating significant funds to ESG efforts. Despite the challenges in expanding ESG strategies due to leadership awareness and underdeveloped market mechanisms, Vietnam remains an attractive destination for foreign investment. This is due to its political stability, cost-effective labour, and growing consumer base. To maintain this appeal, Vietnam must continue supporting foreign businesses, particularly through upskilling the workforce and aligning with ESG standards to ensure a resilient and thriving economy.