Excellency Ito-Sama,
Mr Richard Yorke, 
Mr Le Thanh Tung, 
Business representatives, ladies and gentlemen,

Good afternoon, Xin Chao.

I am honoured to address this distinguished gathering on ESG, which is testimony to MUFG Bank’s support for Viet Nam’s sustainability journey, and strengthened business ties with Japan. 

Japan is a longstanding partner to UNDP on Sustainable Development. In Viet Nam we have jointly supported responsible business practices, and green transport initiatives.

We recently launched a new project to revitalize the Vietnam National Innovation Center, where we hope to strengthen the innovation ecosystem, and empower businesses to drive competitive growth and solve social challenges.

Beyond efforts in international development, Japan’s investment in sustainable development begins at home, and extends across its market, business strategies, and supply chains. ESG strategies translate into competitive advantage for doing business with Japan.  

Ladies and gentlemen,

Geopolitics are reshaping international relations, trade flows and supply chains. Sustainability efforts face increased scrutiny – even pushback. In this evolving context – countries and companies seek sustainability strategies that are not only viable but future proof.

Please allow me to share some food for thought on the key topics and trends.

First of all, on shifting policies. The emerging challenges to corporate sustainability, may temporarily slow down the sustainability train, but will not stop it.

This is true in the Asia-Pacific, where we see more of a shift than a retreat. Economic reforms and just transitions, present fertile ground for innovation towards sustainable business.

Businesses seems to understand very clearly that those who anticipate and align with emerging sustainability regulations have the advantage of early movers.

In Viet Nam, Party General Secretary To Lam proposed in a recent communication that “the new era of Viet Nam’s rise” is to include “the rise of Vietnamese private enterprises”. An anticipated new Resolution is expected to call for “the development of the private economy on a sustainable basis, with business ethics and social responsibility.”

This necessarily means close links to policies on green growth, circular economy, emissions reduction and environmental protection – demanding from businesses concerted efforts on ESG practices.

Business leaders keen to play a part in the “rise of the Vietnamese private enterprise” will take note of the upcoming resolution, as well as other key regulatory developments related to green transition.

Secondly, on energy transition.  World, including Viet Nam, will need to balance between decarbonization commitments, and energy security priorities.

Succes of the energy transition will depend on the transition being just and equitable. Managing negative impacts on people, and advancing fair and inclusive transition to a low-carbon future.

We expect continued pressure to address the widening financing gap. Efforts will include the push to scale-up private capital investment and blended finance, by addressing well-known bottlenecks.

Investors need predictability. Strengthening institutional coordination, clarifying regulatory roles, and embedding internationally recognized safeguards, such as the Equator Principles, will be key to building long-term confidence in Viet Nam’s energy sector.

Viet Nam’s energy transition will also hinge on the bankability of its pipeline. This requires aligning policy clarity, easing permitting procedures, and simplifying financing mechanisms for international capital so that priority projects—in sectors such as offshore wind, battery storage, and grid modernization—can move from concept to a bankable stage.

Thirdly, on carbon markets. Following COP29, and after years of negotiations, carbon markets will continue to gain momentum. Clearer rules should open doors for mobilization of investments around the world.

Viet Nam has a strong track record of carbon projects under the Clean Development Mechanism and the voluntary carbon market. The foundation for a national carbon market is increasingly taking shape through new legislation and regulation, with a current focus on carbon credit management and trading.

All of this is in preparation of the launch of domestic carbon credit trading platform in 2028, and the integration of the domestic market into the international one, after 2030.

Fourthly, on circular economy. Negative impacts of waste on our environment and health, as well as the drive for greater resource efficiencies, will continue to propel circular economy policies and investments. The focus will be on scaling up innovative breakthroughs like textile recycling, modular designs in electronics, plastic waste reduction through bioplastics and refillable systems, and co-processing of waste in construction materials.

In Viet Nam, we see an acceleration of efforts. The National Action Plan on Circular Economy, the Extended Producer Responsibility regulation, and recent calls by the Prime Minister to respond to global supply chain demand for greener, circular and sustainable production, to remain competitive in exports markets like the EU and Japan.  

Fifthly, on climate adaptation. In a climate vulnerable country like Viet Nam, the prospect of more frequent and severe climate shocks, means climate adaptation will gain more attention. It will require investment at different levels.

Companies will need to respond to increased demand for disclosure of assessed exposure to climate risks, and of actions to address these risks.

The government’s recently updated National Action Plan for Climate Adaptation, is grounded in current climate change policies, and is a valuable resource for your own climate adaptation strategies.  

Sixth trend to highlight is on nature. As the links between biodiversity loss and climate change become more apparent, we expect an uptake in integrating nature in corporate sustainability strategies.

The recent biodiversity-focused COP16 put biodiversity in the global spotlight. Nature-based solutions are expected to gain prominence, with businesses increasing investments in ecosystem restoration and conservation projects.

In Viet Nam, wetlands and mangroves are not just natural landscapes—they are lifelines. They shield coastal communities from storms and floods, store carbon to combat climate change, and nurture rich biodiversity. The Government’s Decision on coastal forest protection and green growth, creates a basis for expanding investment of the private sector into their protection.

A seventh trend is on sustainable supply chains. Companies are facing increased pressure on sustainable supply chain management.

In Asia-Pacific, we see increasing due diligence, contributing to risk mitigation and to shared value creation. Companies that integrate human rights and environmental due diligence into their core business strategy are businesses that thrive in the long term.

Finally on sustainability reporting. We expect the regulators and investors around the world to continue to push for consistent and comparable sustainability reporting, but concerns about reporting burdens for companies may slow adoption.

Momentum is building up for global harmonization in sustainability reporting. The two leading standard-setters — the Global Reporting Initiative and the International Sustainability Standards Board — are focusing on interoperability and collaboration.

A survey of a renowned consultancy company shows that sustainability reporting has become part of business as usual for almost all of the world’s largest 250 companies, and a large majority of the top 100 companies in each country where they operate, including in Viet Nam.

However, this is not yet the case for most SMEs in Viet Nam, which seem to have insufficient technical expertise and even awareness, to implement ESG strategies.

However we may refer to it, one thing is clear, ESG is not a passing trend but a fundamental shift in how businesses operate. It offers a path to long-term success by managing risks, driving innovation, and meeting the expectations of stakeholders. Companies that embrace ESG are more resilient and better positioned to thrive in rapidly changing world and its markets.

Ladies and gentlemen,

Climate change does not wait. Nor should we.

The world is uncertain. But the direction is clear: Sustainability is the path forward.

Not just because it’s right. But because it’s smart. It reduces risk. Enhances competitiveness. Opens doors to sustainable markets like Japan.

We encourage you in the words of General Secretary To Lam, to “play your part in the rise of Vietnamese private enterprises”, and to lead Viet Nam’s green transformation.

Congratulations to MUFG Bank and VietinBank for leading by example.

I wish you all a fruitful and inspiring discussion.

Thank you! Xin cam on!