Impact investment is a form of investment aimed at generating social or environmental benefits alongside financial returns. This trend has gained significant traction in recent years as investors, businesses, and individuals recognize their responsibilities toward society and the planet.

Impact-focused investors often choose projects, companies, or funds with clear missions for positive change, balancing financial gains with contributions to sustainable development. With evolving impact measurement standards, impact investing has become a key part of the global economy, fostering positive change and creating lasting value for investors and society alike.

Vietnam’s Growing Impact Investment Ecosystem

At the 2024 Vietnam Impact Investment Forum held on October 24, Dr. Luong Minh Huan, Director of the Business Development Institute at VCCI, noted that impact investment is becoming more familiar in Vietnam, focusing on projects that create social or environmental benefits.

According to Dr. Huan, impact investment provides an innovative way to harness private sector contributions for sustainable development. “Impact-driven organizations are reshaping both society and the business philosophy of traditional companies. Increasingly, businesses are pursuing both economic benefits and positive societal and environmental impacts,” he stated.

With the theme “Advancing Impact Investment for a Sustainable Future”, the 2024 Vietnam Impact Investment Forum was co-organized by the Impact Investment Exchange (IIX), Global Affairs Canada (GAC), and the Vietnam Chamber of Commerce and Industry (VCCI) to drive sustainable growth in line with Vietnam’s development goals and the UN Sustainable Development Goals (SDGs).

Canada’s Ambassador to Vietnam, Shawn Steil, emphasized Canada’s commitment to promoting impact investment in Vietnam: “Canada’s development cooperation program is attracting private capital to support inclusive and sustainable growth in Vietnam. We are dedicated to helping Vietnam transition into an impact investment hub in Southeast Asia,” he said.

Vietnam’s impact investment ecosystem is expanding rapidly. According to a 2022 UNDP report with the Ministry of Planning and Investment, Vietnam has around 22,000 social impact businesses, mainly small or micro-sized (89%), with 72% generating under VND 5 billion per year. These businesses operate in sectors like agriculture, aquaculture, food, education, and handicrafts.

Vietnam is well-positioned to become a leading impact investment hub in Southeast Asia, attracting international capital, particularly in social enterprises. However, challenges remain regarding legal frameworks and capital access. The forum aims to connect investors, businesses, and policymakers to support social enterprises and facilitate capital access for vulnerable groups, particularly women.

Vietnam Leads ASEAN in the CAM Index

According to the 2024 CAM Index Report released at the event, Vietnam scored 50 in the Impact Investment Index for 2023–2024, leading ASEAN and surpassing the global average of 41.

The CAM Index measures progress towards a sustainable and inclusive future, evaluating three pillars: Community Impact, Gender Equality, and Climate Protection, with scores ranging from 1 to 100, where 100 represents the highest achievement level.

Vietnam achieved a notable 60 points in the Community Impact Index, surpassing other ASEAN nations due to its initiatives in community welfare and financial security. However, environmental sustainability remains challenging, with Vietnam’s Climate Index at just 43 points. These scores underscore the need for increased investment and policy improvement to enhance environmental outcomes and ensure long-term sustainability.