In order to improve quality and open up the ability to attract large-scale, stable and long-term international investment capital flows for the Vietnamese stock market, Lao Dong Newspaper in coordination with the Ministry of Finance organized a seminar on "Upgrading the stock market, expanding capital mobilization channels for the economy" on July 30.
Lao Dong Newspaper respectfully introduces to readers the following speech: Discussion: "ESG - an indispensable part of the future IR story" by Mr. Nguyen Quang Huy, CEO of the Faculty of Finance - Banking, Nguyen Trai University.
ESG: From global standards to business development philosophy
In the context of the global increasingly facing profound challenges - from climate change, social inequality, business ethics crisis to environmental degradation - the question for the business community is no longer "should you care about ESG?" but "How long will businesses last without ESG?". This is no longer a formal choice, but has become a vital condition in the modern business ecosystem.
ESG - abbreviated as Environmental, Social, and Governance - is being considered by financial institutions, investment funds, stock exchanges and international rating organizations as a fundamental value framework, a "trend ticket" for smart, long-term and responsible capital flows. In the context of the global financial market being strongly restructured in the direction of promoting sustainability and transparency, ESG is not only a set of good governance criteria, but also becomes a necessary condition for businesses to be able to access large investment funds, especially international capital flows that are increasingly strict with sustainable development standards.
For businesses listed on the stock market - which are a group subject to public supervision from both investors and regulators - ESG has even more strategic significance. Modern investors, especially institutional investors and international ESG funds, no longer look at businesses through profit lenses or short-term financial indexes. Instead, they ask more substantial and long-term questions: how does this enterprise contribute to a sustainable living environment? Do businesses really care about workers and the surrounding community? Is internal governance culture transparent, upright and towards long-term value or is it just for the business?
In that context, the role of IR - Investor Relations, that is, investor relations - needs to be redefined. IR is no longer just a financial data synthesis or preparing documents for periodic information disclosure. Modern IR needs to become a strategic bridge between "market confidence" and "correct value of the business". In particular, in the roadmap to upgrade the Vietnamese stock market, when the criteria for information disclosure, ESG transparency and international capital access are increasingly tightened, the IR team will play a key role in converting sustainable development commitments of enterprises into market language, to convince not only domestic shareholders but also global investors.
ESG is therefore no longer a "geek" concept, but a strategic content - where IR has become the most trusted storyteller of businesses in the modern stock market.
ESG: An indispensable part of future IR identity
Among enterprises listed on the stock market, the role of the investor relations department (IR) has been positioned quite clearly: it is a place to provide financial information, corporate governance and communicate business results to shareholders and the market. However, in the ESG era where sustainable development values have become a leading criterion for institutional investors and global funds the role of IR has changed fundamentally.
IR is no longer just a number-achieving person, but must become a responsible storyteller. That is the person who is capable of conveying the efforts, values and commitments to sustainable development of the business into a seamless, convincing and inspiring story - from the perspective of investors, especially international ESG funds.
First of all, IR needs to shift the focus from presenting pure financial indicators to fully reflecting the "living value" of businesses. A beautiful financial report today is no longer enough to convince large investors. They want to see a structured ESG reporting system with clear, independently verified qualitative data. Information such as CO2 emissions, renewable energy use rate, female ratio in the board of directors, anti-corruption mechanisms, human development policies, etc. are gradually becoming essential indicators in the IR information ecosystem of listed companies.
In the modern stock market, where upgrading depends not only on liquidity or capitalization but also requires transparency of non-financial information, the quality of ESG reporting and consistent delivery capacity of IR play a very important role. That is the key for businesses to attract long-term capital flows, access investment funds with sustainable strategies, and increase business valuations through the level of trust that the market assigns them.
In the context of investors increasingly expecting more from the social and environmental responsibility of businesses, IR is not only the information support department, but also the leader of trust - the one who turns data into a story, and the story into a capitalized value.
From index to life value
In the context of global investors increasingly prioritizing sustainability, a beautiful financial report, even important, is no longer enough to build confidence in the stock market. Organizational investors especially ESG funds are shifting attention from short-term profits to long-term development capacity and social contributions of businesses.
Instead of just assessing businesses through revenue, profit or EPS growth, investors today require a comprehensive ESG information system, integrated into annual reports or published separately according to international standards. Quantial data such as carbon emissions, renewable energy usage rate, female ratio in leadership, diverse and integrated policies, anti-corruption mechanisms, community commitments... have become indispensable criteria in the information ecosystem that the IR department needs to proactively provide.
For listed companies, standardizing and transparency ESG information not only helps enhance brand image or demonstrate social responsibility, but is also a necessary condition to access selective international investment flows. Many large investment funds in the world have now applied ESG filters to eliminate businesses that do not meet sustainability standards no matter how attractive financial profits are.
Especially in the context of Vietnam actively implementing the roadmap to upgrade the stock market, the requirement for ESG information transparency is being pushed up as one of the key criteria. Therefore, IR cannot only report What the market requires, but needs to be one step ahead, proactively building a complete, verified ESG data system and conveying it consistently in market language. This is the way businesses build trust, improve valuation and attract long-term, high-quality capital flows.
From compliance to proactive standards creation
In the early days, many businesses approached ESG as a complying obligation only acting when required, when investors questioned or when management agencies set specific regulations. However, this approach is no longer suitable in the current context, especially for businesses listed on the stock market - where all published information directly affects investors' valuations and confidence.
Market leaders are businesses that do not wait, but proactively integrate ESG into development strategies, product design, management system operations and build organizational culture. ESG cannot be an external makeup layer, but must become a core part of every business decision.
In that journey, the investor relations department (IR) plays the role of shaping the new standard system - not only for the external market, but also within the enterprise. IR is the bridge to convey the ESG philosophy from the board of directors to the investment community, from commitment to action, from data to trust. This is a role of system design: helping businesses not only meet standards, but also create new standards, reflecting long-term value, not stopping at immediate response.
From defense to creating competitive advantages
ESG is not simply a new requirement for investors, but a form of restructuring market confidence. The fact that businesses build a systematic, transparent and methodical ESG strategy is an opportunity to shift from a defensive position to a proactive position to create competitive advantages.
A listed company that effectively implements ESG can access long-term capital flows and strategies from large investment funds, especially ESG funds that are increasingly accounting for a large proportion of total global investment assets. The transparency, commitment and stability of the governance, environmental and social model will help businesses increase their trust in the market, thereby improving valuation coefficients such as P/E and P/B.
Not only stopping at raising valuations, ESG also helps businesses reduce capital costs thanks to lower risks - a factor increasingly taken into account by financial institutions, credit rating organizations and commercial banks in the appraisal process. At the same time, integrating ESG from the beginning will help businesses easily penetrate and expand their market share in developed markets with high sustainability requirements such as the EU, the US, Japan - where ESG has become a mandatory passport for all global suppliers.
With such advantages, it can be affirmed: ESG is no longer a side choice, but is becoming a core competitive lever in the domestic and international stock market. And IR, as a leader of information and trust, needs to be a pioneer in this transformation process.
ESG is not just communication - that is the nature of a business
One of the common mistakes is that businesses consider ESG as a communication tool - a "beautiful shirt" used to convince investors. However, in an era of information and data transparency that can be verified, what is communicated must come from internal values. IR in the ESG era cannot be just a spokesperson, but must be an inner mirror for the entire enterprise, honestly reflecting the relationship between commitments and practical actions.
ESG is not unique to a department, nor is it a short-term response initiative. That is the strategic content, requiring businesses to change from the root - from the way of product design, human development, system building to the formation of organizational culture. Each pillar of ESG must be concretized, operated daily and clearly demonstrated in the market, especially in a listed environment that is subject to increasingly high public supervision and international standards.
ESG in products
Businesses need to design and supply products that are responsible to the environment, customers and society. This includes quality control, extending product life, improving recycling capability, minimizing environmental impact during production, and ensuring social justice throughout the entire supply chain.
These factors are not only consumer requirements, but also important evaluation criteria for professional investors especially ESG funds, pension funds and global institutional investors. In the stock market, businesses that proactively integrate ESG into product design and management will often be valued higher thanks to their sustainability and long-term risk control capability.
ESG in humans
Human resources are the core of all sustainable development models. An ESG-oriented enterprise needs to clearly demonstrate its commitment to fairness in recruitment, diversity in its leadership team, creating opportunities for comprehensive capacity development for employees, and fully protecting their legitimate rights.
This is not only a humanistic value but also a decisive factor for the trust of the investment community. In the process of screening and selecting a portfolio, many ESG investors put the criteria of human resources first - because this is an important indicator of maturity in management and the ability to create long-term value.
ESG in the system
For ESG to not only be documented but truly implemented effectively, businesses need to integrate it into the internal management system. From internal control policies, the Board of Directors' monitoring process, to the ESG risk assessment framework - all must be fully established, clear and operate regularly.
In a listed environment, where businesses are subject to supervision from shareholders, exchanges and management agencies, the substance of ESG operations is a factor that is carefully verified by investors. Businesses that only stop at commitments but lack implementation mechanisms will be quickly eliminated from the "long-term investment map" of global financial institutions.
ESG in corporate culture
Finally - and also the core element - ESG can only truly operate if it becomes a part of corporate culture. Values such as transparency, integrity, openness and responsibility must be absorbed at all levels in the organization - from the board of directors to frontline employees, from the meeting room to the production site.
When an ESG culture is formed, decisions will not only follow the process, but also come from the organizational center. This is a platform to help businesses maintain consistent actions, even when there is no pressure from the market. And that creates trust - the most valuable asset in the era in which investors increasingly value businesses not only by numbers, but by operational ethics.
ESG decides cash flow
In the context of the global financial market repositioning towards sustainable development, ESG has become one of the key criteria influencing capital allocation decisions. According to data from MSCI and Bloomberg, by 2025, over 50% of global investment assets will be directly affected by ESG standards - an irreversible trend.
Leading investment groups such as BlackRock, Vanguard and Norges Bank have applied a strict exclusion mechanism for businesses that do not meet ESG criteria. In developed markets such as Nasdaq, London Stock Exchange (LSE) and increasingly clearly at the Ho Chi Minh City Stock Exchange (HOSE), the system of standardizing sustainable development reports has become a mandatory requirement for listed enterprises. At the same time, international financial institutions such as ADB, IFC and World Bank all include ESG in their list of prerequisites for appraisal and disbursement of capital.
This carries a clear message: Enterprises that do not comply with ESG standards will gradually be eliminated from the global investment map not because of lack of financial potential, but because of lack of adaptation to the trend of transparent, responsible and sustainable governance.
In Vietnam, the ESG wave is shifting from voluntary to mandatory. The Ministry of Finance has proactively promoted the roadmap for sustainable development reporting, while the State Bank requires the integration of ESG in the corporate credit rating framework. From policy to market, from equity to bank credit, cash flow is being led by the substantial ESG commitment level of the enterprise.
In particular, in the process of Vietnam moving towards market upgrading, ESG is not only a "passport" to access long-term capital flows from global funds, but also a sign showing the maturity of the financial market. The presence of ESG products such as green bonds, ETF ESG, or sustainable development indicators will not only deepen the market structure, but also contribute to building trust and increasing attraction for international investors.
In the increasingly serious post-pandemic and climate change era, investors are not only looking for profits - they are looking for sustainability. And ESG is the constant to help capital flow find the right place to stop for a long time.
Vietnam in the global ESG flow: Opportunities and challenges
In the wave of global capital shift according to sustainable development standards, Vietnam is emerging as a potential destination in Asia. ESG is not only a measure of responsibility, but also a strategic opportunity to help domestic enterprises integrate deeper into the global value chain and improve competitiveness in the international capital market.
In terms of opportunities, many international financial institutions, including IFC, ADB and HSBC, all assess Vietnam as one of the countries with great potential for sustainable financial development. The market is in a pivotal period to welcome international capital flows after upgrading - where ESG criteria will play the role of "first filter" in disbursement decisions. Vietnam also has a young, flexible business ecosystem, ready to integrate ESG from the beginning. This is a rare advantage to create momentum in the international market, especially when major economies are spending a lot of time and resources to restructure the old system.
Along with that, the young population, high urbanization rate and a strong digital economy will be the foundation for ESG to become a new growth driver, gradually replacing the traditional resource exploitation model.
However, the ESG journey in Vietnam also faces many challenges. The lack of standardization of data, measurement systems and reports according to international practices makes it difficult for many businesses to build reliable ESG reports. Currently, Vietnam still lacks reputable independent ESG rating organizations, leading to gaps in supervision and creating conversion momentum. In particular, short-term thinking is still popular, when a part of businesses still consider ESG as a cost, instead of investing in long-term value.
For ESG to truly enter the heart of businesses, a multi-layered action alliance between the state, businesses, investors, media and academia is needed. The State needs to establish a clear legal framework, promote a roadmap for mandatory ESG reporting and have a financial incentive mechanism for pioneering enterprises. Enterprises must consider ESG as a core strategy, invest in management systems and build internal capacity. Investors need to include ESG in the mandatory criteria in the disbursement decision. Communication plays a role in guiding awareness and spreading ESG values to the community. The academic community can support the standardization of concepts, provide basic knowledge and connect with international practices.
IR's role in converting ESG into market confidence
If ESG is a journey to create sustainable value, IR is the guide to bring those values to investors in a convincing, transparent and strategic way. In an era where non-financial data increasingly dominates investment decision making, IR is not only a reporter, but a connector between ESG ideals and market expectations.
First of all, IR is the one who connects the internal ESG ecosystem of the enterprise. This requires them to understand and synthesize information from many departments: environment, human resources, operations, legal documents, internal control, thereby creating a smooth data flow, which can be verified and serve the systematic announcement of ESG information.
Second, IR must be the one to verify its value - against all manifestations of greenwashing. In the context that many new businesses are only "learning ESG" and have not really transformed their operating models, IR plays a role in screening, criticizing and ensuring that the information provided to the market is honest, well-founded, and accurately reflects the level of commitment of the business. This is the first line of defense to protect listed reputation and investor confidence.
Third, IR is the one who tells the story in market language. Not all investors can read the ESG language in the way sustainable development experts understand it. Therefore, IR needs to convert ESG data into economic value: cost - benefits, risks - opportunities, short term - long term. A 20% emission index is not just a number, but also a basis for reducing capital costs, increasing access to the ESG fund, and opening up new markets.
Finally, IR is the one who supervises the ESG journey. They not only report the progress of ESG commitments to the market, but also respond to investors' expectations for the business - creating a cycle of continuous improvement and effective dialogue.
Therefore, the IR team in the ESG era needs to move beyond the technical role. They must have a strategic mindset, understand sustainable development finance - governance - sustainable development, legal knowledge, and have the ability to communicate orientation. IR is not only an extended arm of the Board of Directors to the outside, but also an architect of trust the one who shapes the market sense of the long-term value of the business.
ESG is not only a path, but a development destiny
ESG is no longer an option, but is becoming a vital requirement in an era where trust and responsibility are scarce assets. For global investors, businesses are not simply numbers, but an ecosystem of value, ethics and vision. Those who go early with ESG not only to meet market requirements, but for a sustainable development philosophy will be the ones to lead.
In this journey, IR is no longer the one to stand outside to observe or simply report. IR is the focus of transformation, the one who recountes the ESG journey through data, through market confidence, and through the language of real value. When ESG becomes a common language between businesses and investors, IR is the most honest and strategic interpreter.
In a world where non-financial risks can shape the fate of businesses, ESG is the leader, and IR is the leader to build long-term trust. It is no coincidence that markets, businesses, and brands that touch global emotions are all entities living with ESG values.
In a world where trust is a scarce asset, ESG is the unit that measures trust, and IR is the one that creates that trust.
