DECISION

APPROVING “2022-2025 PROGRAM TO SUPPORT PRIVATE SECTOR ENTERPRISES IN SUSTAINABLE BUSINESS”

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; Law dated November 22, 2019 on Amendments to some Articles of the Law on Government Organization and Law on Local Government Organization;

Pursuant to the Law on Provision of Assistance for Small and Medium-Sized Enterprises dated July 04, 2016;

Pursuant to the Law on Environmental Protection dated November 17, 2020;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 01, 2020 on major tasks and solutions for implementing the 2020 Socio-Economic Development Plan and State Budget Estimates;

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Pursuant to the Prime Minister’s Decision No. 622/QD-TTg dated May 10, 2017 promulgating the National Action Plan to implement the 2030 Agenda for Sustainable Development;

Pursuant to the Prime Minister’s Decision No. 1362/QD-TTg dated October 11, 2019 approving plan for sustainable development of private sector enterprises by 2025 with a vision towards 2030;

At the request of the Minister of Planning and Investment.

HEREBY DECIDES:

Article 1. The program to support private sector enterprises in sustainable business in Vietnam is promulgated together with this Decision.

Article 2. This Decision comes into force from the date on which it is signed.

Article 3. Ministers, heads of central government authorities, heads of Governmental agencies, Chairmen/Chairwomen of People’s Committees of provinces and central-affiliated cities and heads of authorities and units concerned are responsible for the implementation of this Decision./.

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PROGRAM

SUPPORTING PRIVATE SECTOR ENTERPRISES IN SUSTAINABLE BUSINESS IN 2022 - 2025 PERIOD
(Enclosed with the Prime Minister’s Decision No. 167/QD-TTg dated February 08, 2022)

I. OBJECTIVES AND BENEFICIARIES

1. Objectives of the Program

a) General objectives

- Sustainably develop private sector enterprises, ensuring close, reasonable and harmonious coordination between economic efficiency and social responsibility, protection of resources and environment, contributing to the attainment of 17 sustainable development goals of Vietnam by 2030.

- Mobilize social resources, gradually developing an ecological system to support enterprises in sustainable business, actively contributing to the creation of jobs, the improvement of living standards of low-income earners and disadvantaged people, the environmental protection and response to climate change in Vietnam.

b) Specific objectives by 2025

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- Train and increase awareness of cadres, public officials and public employees to meet the demands for sustainable business support, consultancy and management.

- Support the development of at least 10 instruments and solutions for measurement, assessment and recognition of enterprises engaged in sustainable business; thereby supporting around 10,000 private sector enterprises in sustainable business; contributing to the fact that the energy efficiency is 5.0%- 7.0% of the total national energy consumption; increasing the average labor productivity by around 7%/year.

- Establish a database and develop an ecological system to support enterprises in sustainable business.

- Build typical sustainable business models to facilitate sustainable business.

- Mobilize lawful resources, especially from enterprises in Vietnam to undertake initiatives for sustainable business.

2. Scope and beneficiaries

a) The Program will be executed nationwide from 2022 to 2025.

b) Beneficiaries:

- Private sector enterprises conducting sustainable business (hereinafter referred to as “sustainable business enterprises”).

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- Ministries, central government authorities; People’s Committees of provinces or central-affiliated cities (hereinafter referred to as “provincial People’s Committee”) and their affiliated units; organizations and associations tasked with activities of the Program.

c) Sustainable business covers:

- Business models applying circular economy, which is an economic model which encompasses the design, production, consumption and services activities aimed at reducing raw materials, extending product life, reducing waste generation and minimizing adverse impacts on the environment1.

- Inclusive business model, which is a type of business model that integrates low-income people into an enterprise’s value chain in and/or production establishment as suppliers, customers, distributors or possibly workers involving in production and business activities to create shared value.

- Other sustainable business models, which are those ensuring economic sustainability, environmental protection, response to climate change and settlement of social security matters.

II. ACTIVITIES OF THE PROGRAM

1. Development of an ecological system to support sustainable business

a) Design documents, disseminate information through mass media and social networks in order to raise society and enterprises’ awareness of sustainable business.

b) Train and increase awareness of cadres, public officials and public employees involved in sustainable business support and management.

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d) Build and develop an information platform in order to create databases of sustainable business enterprises.

dd) Encourage and assist organizations promoting sustainable business to research, develop and apply solutions and instruments for the purposes of measurement, assessment and recognition of sustainable business enterprises.

e) Encourage financial and credit institutions to research and develop financial and credit products and services for sustainable business; develop an information platform for connecting sustainable business enterprises with credit institutions and investors.

g) Provide advice on financial and credit products and services for sustainable business.

h) Organize conferences, workshops and seminars to share information, experiences and good practices on sustainable business models; measurement solutions and instruments; assessment and recognition of sustainable business enterprises; to connect enterprises conducting sustainable business with credit institutions and investors; connect typical successful domestic and international organizations, experts and enterprises.

2. Support for sustainable business enterprises

a) Enterprises assessed and recognized as sustainable business enterprises will receive:

- Support for consultancy and training, including on-site training at enterprises on strategy formulation, design of sustainable business models and plans; personnel; finance, production, sale, market, internal administration and other contents related to production and business activities of enterprises.

- Support for domestic and overseas intensive training in application and development of sustainable business models.

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- Financial support for lease or purchase of digital transformation solutions; testing and completion of sustainable business products and models.

- Support for consultancy on access to finance and raising of investment.

- Support for communication, trade promotion and market expansion for sustainable business products and services of enterprises; support for successful registration of accounts for sale of products and services on international e-commerce trading floors; financial support for maintenance of accounts on domestic and international e-commerce floors; financial support for renting locations, designing and erecting commodity booths, transport of products for display, travel, meal and accommodation expenses for enterprises’ representatives participating in exhibition fairs and trade promotion on a national and international basis.

b) Sustainable business enterprises being small or medium-sized enterprises will be provided with state funding for performance of the tasks specified in point a of this Clause at the most favorable level prescribed in the Law on Provision of Assistance for Small and Medium-Sized Enterprises and its guiding documents.

3. Management of the Program

a) Design guiding documents and process for execution of the Program; build a framework for assessment and supervision of the Program.

b) Organize annual and periodic assessment and review of the Program, submit a report thereon to the Prime Minister and propose amendments to the Program’s contents and activities where necessary.

III. FUNDING FOR EXECUTION OF THE PROGRAM

1. Funding sources

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a) Contributions, donations and other lawful financial sources of organizations, individuals and enterprises participating in the Program, domestic and foreign investment funds for execution of the Program.

b) Central and local government budget (regular spending funds); partial support for the activities specified in clause 1 (points a, b, c and h), beneficiaries prescribed in clause 2 (point b) Section II of the Program; not exceeding 10% of the total state funding for execution of the Program for the activities specified in clause 3 Section II of the Program. Other activities will be funded by private capital.

Central government budget for activities of the Program shall be allocated by ministries and central government authorities. Local government budget for activities of the Program shall be allocated by local authorities.

2. Principles of using funding

a) The mobilization, management, use and accounting of the funding sources prescribed in point a clause 1 Section III of the Program shall strictly comply with prevailing regulations of law. Donations for activities of the Program shall be used under the agreement with the donor (if any) or regulations of the Program and documents providing guidelines for execution of the Program (if an agreement with the donor is not available).

b) The estimation, disbursement and accounting of state funding for execution of the Program shall comply with regulations of the Law on State Budget, resolutions of the National Assembly, resolutions of the Government, guiding documents and relevant legal documents, ensuring the practicality, efficiency, feasibility, thrift and incorporation thereof into other programs whose objectives are suitable for those of the Program.

IV. IMPLEMENTATION

1. The Ministry of Planning and Investment has the responsibility to:

a) Preside over and cooperate with the Ministry of Finance, Ministry of Resources and Environment, Ministry of Labor, War Invalids and Social Affairs of Vietnam, relevant ministries and agencies concerned in providing guidance on mechanism for organizing execution of the Program, ensuring feasibility and efficiency, including guidance on principles of measurement, assessment and recognition of sustainable business enterprises; standards and conditions for use of results of organizations carrying out measurement, assessment and recognition of sustainable business enterprises.

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c) Carry out the activities specified in clause 3 Section II of the Program and organize the execution of the Program within the scope and domains under its management.

2. The Ministry of Finance has the responsibility to:

a) Preside over providing guidance on the mechanism for management and use of state funding for execution of the Program, adhering to the principles prescribed in this Decision.

b) Preside over considering annually allocating state funding for execution of the Program under the Law on State Budget.

3. Ministries, central government authorities, provincial People’s Committees, organizations and associations have the responsibility to:

a) Make annual and 2022-2025 plan and estimate of funding for execution of the Program, incorporate them into other programs whose objectives are suitable for those of this Program (if any); submit them to the Ministry of Planning and Investment of Vietnam for application thereof nationwide.

b) Assign affiliated units to act as the contact point and organize execution of the Program on an annual basis. Carry out annual and periodic assessment and review of the Program within the scope and domains under their management; propose amendments to the Program’s contents and activities where necessary; send them to the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister.

c) Assume prime responsibility for the feasibility, efficiency, thrift and execution of the Program within the scopes and domains under their management, carry out incorporation into existing similar programs for the purpose of absolute thrift.

d) Provincial People’s Committees shall provide funding for the Program’s activities carried out themselves state under the Law on State Budget.

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a) Proactively study, propose and participate in specific activities to support the promotion of sustainable business within the scope of activities of the Program.

b) Strictly comply with regulations on guidelines for execution of Program promulgated by competent authorities.

5. Sustainable business enterprises have the responsibility to:

a) Provide timely, sufficient and accurate information and documents on enterprises at the request of agencies and organizations promoting the development of sustainable business and take legal responsibility for the information and documents provided.

b) Strictly comply with regulations of the Program and its guiding documents; adhere to the commitments to agencies and organizations promoting the development of sustainable business.

c) Allocate reciprocal resources for receiving, cooperating in and organizing effective realization of support resources.

1 Article 142 of the Law on Environmental Protection 2020