The current progress and future plans
Grant Thornton International Business Report (IBR) survey found that, globally, 92% of mid-market businesses have undertaken at least one sustainability initiative in the past year, with 62% having completed three or more. In comparison, 80% of mid-market firms in Vietnam have implemented three or more sustainability initiatives, surpassing the figures for the Asia-Pacific region (64%) and ASEAN (68%). This demonstrates a stronger commitment to sustainable practices among firms in Vietnam.
Additionally, it was revealed that mid-market firms are particularly focused on enhancing their brand reputation by taking visible and engaging actions for customers and stakeholders rather than formal reporting on their sustainabil🥂ity progress and relevant metrics. According to the survey findings, mid-market firms globally are concentrating their sustainability ef⭕forts primarily on developing and implementing sustainability strategies (51%), followed by gathering relevant data (47%). Sustainability reporting comes in third (40%), indicating it is not the top priority. In Vietnam, the top priorities are developing and implementing a sustainability strategy (60%) and conducting sustainability evaluation and data gathering (59%). In contrast, reporting ranks fifth, with 49%.
Key factors driving sustainability initiatives
According to Grant Thornton International’s sustainability research, “brand reputation” has been identified as the key driver for sustainability initiatives globally (19%), motivating companies to invest in sustainable initiatives as they respond to shifting customer expectations and intensifying market competition. The next two most cited factors are “market competition” (14%) and “access to finance” (10%). In Asia-Pacific, the most chosen option is also “brand reputation” (17%), followed by “market competition” (16%) and “access to finance (11%). Meanwhile, the top drivers for sustainability initiatives in ASEAN are “market competition” (21%), “purpose of the business (17%), and “brand reputation” (14%). In Vietnam, the percentage recorded for “brand reputation” also takes the lead at 23%. “Market competition” and “access to finance” follow as the second and third drivers, with 17% and 12% of Vietnamese firms citing them respectively, which is aligned with global trends.
Key barriers in implementing sustainability initiatives
According to IBR data, globally, the mid-market identifies four key barriers to successfully developing sustainability initiatives: cost (15%), complexity of regulations and standards (13%), resource requirements (11%), and the volume of regulations and standards (10%). For Vietnamese businesses, the journey toward sustainability faces similar but more pronounced challenges. “Cost” is the most significant barrier, with 24% of mid-market firms citing it, compared to 15% globally, indicating the significant financial strain of implementing ESG initiatives in Vietnam. “Complexity of regulations and standards” is another major challenge, selected by 16% of firms in Vietnam compared to 13% globally.
Conclusions and Recommendations
Through the survey, Grant Thornton provides a comprehensive view of sustainability efforts among mid-market businesses and highlights the importance of immediate actions toward sustainability initiatives.
For economies to flourish and societies to progress sustainably, the mid-market is a driving force. Businesses must take decisive actions toward sustainability to unlock internal growth and contribute to a sustainable future for th♐e whole society. Accordingly, Grant Thornton recommends the following actions to motivate mid-market businesses, iꦫncluding those in Vietnam, to promptly integrate sustainability into their core business strategies:
