Image Image

VietNam Holding Ltd: Environmental, Social and Governance Investing

VietNam Holding Ltd., integrating Sustainable Development Issues in Vietnam’s Equity Markets
 
The Investment Strategy
 
Since 2006, VietNam Holding has built a strong portfolio of Vietnamese enterprises. Currently VNH’s equity portfolio is valued at approximately USD70 million. On aggregate in 2011 enterprises in VNH’s portfolio employed more than 45'000 individuals and generated approximately USD8.8 billion (VND184 trillion) in revenue.
 
VietNam Holding actively takes into account environmental, social, and corporate governance (ESG) criteria in the investment process. All portfolio companies are carefully monitored for key performance indicators and the investment team assesses enterprise strategies for their effectiveness in improving ESG performance. Where the business case is materially affected, the Fund seeks to increase management awareness of the relevant issues. In the process of engaging with portfolio companies,VNH refers to international best practices and encourages management to adopt solutions which can be executed in the Vietnamese context. 
 
The Fund does not invest in enterprises with significant activities in nuclear energy, defense, tobacco, gambling or distilled alcohol. Companies engaging in controversial practices such as labor law violations and environmental pollution are similarly excluded.
 
The Environmental Advantage
 
As a local investor we are keenly aware of the environmental concerns relevant to our investee companies. Depending on the industry in which enterprises operate, they are faced with different specific challenges relevant to their business. The developing regulatory background and increasing public awareness for environmental concerns are increasing pressure on executives to take environmental issues into account in their management strategies. 
 
Taking the environment as an example, energy efficient products and services will be required to maintain a competitive advantage. Against this background, VietNam Holding is committed to create and maintain awareness for environmental issues among local business leaders and regulators. 

 
Businesses which address the evolving environmental risks and opportunities will be better positioned for future growth. The VNH Forum in March 2012 aimed to showcase environmental best practices and management strategies and provide a platform for senior enterprise executives as well as Ministry of Natural Resources and Environment officials to discuss the relevance for Vietnam of these increasingly important topics.
 
VietNam Holding’s approach to environmental matters goes beyond its investment strategy, and the Fund is committed to reducing its own carbon footprint. In its last fiscal year, VNH offset the sum of its carbon emissions generated by domestic and international travel as well as office heating through a Clean Development Mechanism approved project located in Vietnam’s Daklak province. The Fund intends to continue these sound practices in the future, and looks forward to successful partnerships with investee companies in bringing the environmental agenda forward in Vietnam. 
 
Value Investing for Sustainable Development 
 
VNH’s value investment approach has enabled the Fund to mitigate downside risk and ensure the quality and strength of its portfolio companies’ earnings over time. An overarching element in the investment context is for financial analysts to incorporate a sector specific view on the long-term impacts of social and environmental issues on listed companies. As the Vietnamese securities markets develop further, sophisticated investors will increasingly put a higher value on companies with well managed social and environmental strategies. This will give these companies better access to capital, which is a key element in supporting economic growth. It is this long-term mindset and extended scope of analysis that VNH seeks to promote.

 
The Fund’s goal is to invest in profitable businesses while creating awareness for and fostering dialogue around the social, environmental and governance issues most relevant to Vietnam. VietNam Holding will seek to support future initiatives, and facilitate new avenues of communication between businesses, policymakers and investors on the road to Vietnam’s sustainable development.
Source: Vietnam Potentials

Other News

Opportunities for Vietnam to Develop Sustainable Cities

Opportunities for Vietnam to Develop Sustainable Cities

Urban Infrastructure Initiative (UII) initiated by the World Business Council for Sustainable Development (WBCSD) in 2010 created the reliable voice of businesses to sustainable urban development. The Vietnam Business Council for Sustainable Development (VBCSD), administered by the Vietnam Chamber of Commerce and Industry (VCCI), is a pioneer in communicating, raising the awareness and orientating sustainable urban development in Vietnam

VINA KRAFT PAPER CO., LTD: 3G - protect environment

VINA KRAFT PAPER CO., LTD: 3G - protect environment

Vina Kraft Paper pays close attention to good environmental management as a mean of minimizing natural resources utilization and pollution and implements. 3G policy which demonstrates the commitment to Green Product, Green Process and Green Mind.

Economic Empowerment for Women and Green Building

Economic Empowerment for Women and Green Building

“Economic Empowerment for Women” and “Green Buildings” are the central contents of a working session hosted in Hanoi on May 25, 2012 by Deputy Prime Minister Nguyen Thien Nhan, Chairman of National Council for Sustainable Development with the Vietnam Business Council for Sustainable Development (VBCSD), led by Dr Doan Duy Khuong, Co-Chair of VBCSD and Vice Executive President of VCCI, and Mr Indronil Sengupta, CEO of Tata Group - Southeast Asia.

VBCSD Executive Board Meeting for the 5th Time

VBCSD Executive Board Meeting for the 5th Time

On 25th May 2012, at the Vietnam Chamber of Commerce and Industry, VBCSD Executive Board meeting was organized in VBCSD Meeting Room.

Meeting between Deputy Prime Minister Nguyen Thien Nhan and VBCSD

Meeting between Deputy Prime Minister Nguyen Thien Nhan and VBCSD

In the afternoon of May 25th 2012, at the Government Office, the Deputy Prime Minister Nguyen Thien Nhan, Chairman of National Council for Sustainable Development had a meeting with delegates from Vietnam Business Council for Sustainable Development (VBCSD).

Enterprises, farmers, consumers also benefit

Enterprises, farmers, consumers also benefit

FrieslandCampina Vietnam has implementing dairy development program in the past 15 years with the total investment up to now is more than 13 million U.S dollars. At present, there are 70 Vietnamese engineers, veterinarians, and Dutch experts are working full time for this program.

Unilever Promotes Sustainable Tea Development in Vietnam

Unilever Promotes Sustainable Tea Development in Vietnam

In early January 2012, Ministry of Agriculture and Rural Development (MARD) and Unilever in Vietnam signed the official MOU on the Vietnam Tea Initiative with the presence of Mr Bui Ba Bong - Vice Minister of Agriculture and Rural Development, Mr Vikram Agarwal - Vice President, Tea Procurement of Unilever, Mr JV Raman, Chairman of Unilever Vietnam, other representatives from MARD and Unilever, as well as representatives from other Government agencies and the media.

The 2nd meeting on 21st May of the Working Group on Vision 2050

The 2nd meeting on 21st May of the Working Group on Vision 2050

On 21st May 2012 in Hanoi, the working group on Vision 2050 of Vietnam Business Council for Sustainable Development (VBCSD) convened to complete two important reports "Economic Empowerment for Women" and "Green Building" to submit to the Deputy Prime Minister Nguyen Thien Nhan, Chairman of the National Council for Sustainable Development ahead of the United Nations Conference on Sustainable Development (Rio+20).

Products Should Register Green Labels

Products Should Register Green Labels

Businesses should register green labels for products soon, said Dr Duong Thanh An, Director of Policy and Legislation and Head of Vietnam Green Label Office under the Vietnam National Environment Administration (NEA), at a business training class on climate change held in Hanoi by the Vietnam Chamber of Commerce and Industry. This event drew a broad attendance from professionals and businesses.

Co-Chairman of VBCSD met with the UN Secretary General's Special Envoy for DRR

Hanoi, April 20. Dr. Doan Duy Khuong, Vice Executive President of VCCI, Co-Chairman of VBCSD met with the UN Secretary General's Special Envoy for Disaster Risk Reduction Margareta Wahlstrom.