Ha Noi 21 October 2020 - Regulatory system of Viet Nam on responsible business practice is extensive and compatible with the “protect, respect and remedy” framework provided in the United Nations Guiding Principles on Business and Human Rights (UNGP), however a National Plan on ensuring responsible business practice is needed to attract higher quality investment to Viet Nam.

This is one of the main recommendations of a Preliminary Assessment of the Regulatory Framework on Responsible Business Practice in Viet Nam, launched at a national consultation workshop in Ha Noi this morning. Viet Nam  is a signatory of many international commitments on trade, labour and other responsible business practice standards to guide domestic law. The assessment recommended that the country should prioritize improvement of the regulatory framework to ensure protection of vulnerable groups in global value chains. They include workers in the informal sector, ethnic minorities, migrant workers, victims of modern forms of labour exploitation, persons with disabilities, and LGBTI (lesbian, gay, bisexual, transgender and intersex people).

In partnership the Government of Sweden, the Ministry of Justice (MOJ) and UNDP Viet Nam cohosted the national consultation workshop to receive feedback and insights from representatives of the Government, businesses, business associations, development partners, UN agencies, NGOs, research and academic institutions.

“Responsible business practice is essential to ensuring economic growth,” Swedish Ambassador to Viet Nam Ann Mawe said in her opening remarks. “In our experiences, economic growth does not come at the cost of social or environmental development. Sweden has an excellent track record in this regard, making responsible business practice an important component of business development, balancing growth with social dialogue in the workplace and sustainability”. (Read full speech)

In Viet Nam, efforts at promoting responsible business practice have been driven through the lens of sustainable development. The country leaders have recently shifted their focus from a purely economic development strategy, to one of sustainable development. As early as 1998, the Politburo has issued Directive 36-CT/TW to strengthen environment protection during the industrialization and modernization of Viet Nam. Very recently, in late 2019, the Prime Minister issued Decision 1362/QD-TTg approving a plan for sustainable development of the private sector. A key viewpoint of the Decision is to “develop private sector in an effective and sustainable manner, ensuring a close, reasonable and harmonious combination between economic efficiency, social responsibility, and natural resources and environment protection” (Article 1.I.2).

“Basing on three pillars of protect, respect and remedy, responsible business practice is, first of all, the conformity of laws and regulations”, Vice Minister of Justice Nguyen Khanh Ngoc said in his opening remarks. “Promotion of responsible business practice in Viet Nam aims at the balance between continued economic growth and sustainable development. It can be done thanks to the improvement of relevant laws and regulations and their enforcement”.

UNDP Resident Representative in Viet Nam Caitlin Wiesen highlighted the opportunity for Viet Nam to advance responsible business practice. “COVID-19 has disclosed pre-existing inequalities and vulnerabilities in our systems, including in how we do business, ” she said. “Viet Nam has shown tremendous leadership in managing the pandemic. Recovering from and co-existing with COVID provides Viet Nam with an opportunity to extend this leadership and build forward better, by rebuilding businesses that are responsible to the people and the environment. They can continue to drive economic growth without compromising sustainable development.”

Ms. Caitlin Wiesen noted that responsible business should not be seen as another layer of regulation or as an administrative burden, but rather, an essential foundation for ensuring Viet Nam’s continued economic, social and environmental development – vital to  the achievement of the Sustainable Development Goals. (Read full speech)

The workshop heard presentations on Responsible Business Practice in ASEAN in the Context of COVID-19, including experience in advancing responsible business in Thailand, and business cases and stakeholders’ viewpoints in Viet Nam from workers unions, persons with disabilities and large multinationals operating in Viet Nam. Participants discussed ways forward on developing a national action plan to advance Responsible Business Practice in Viet Nam.